Daehan Shipbuilding, which repeatedly engaged in subcontracting abuses such as delayed issuance of documents and cost shifting, will face sanctions from the Fair Trade Commission.
On the 28th, the Fair Trade Commission announced that it imposed corrective orders and a fine of 96 million KRW on Daehan Shipbuilding for violating the Subcontracting Fairness Act.
According to the FTC investigation, from July 2018 to May 2021, Daehan Shipbuilding commissioned additional shipbuilding work to 56 subcontractors and delayed or failed to issue written documents detailing the work content and subcontracting payments for a total of 6,700 transactions.
Furthermore, Daehan Shipbuilding established special clauses that shifted the costs of accident and safety incidents, which should have been borne by Daehan Shipbuilding, onto the subcontractors.
The FTC ordered Daehan Shipbuilding to prevent recurrence of similar acts in the future and imposed a fine of 96 million KRW for violations of the obligation to issue written documents.
The FTC stated, "This action is significant in that it detected and sanctioned the common practices in the shipbuilding industry such as performing work before contracts and unfair special clauses, raising awareness among principal contractors to prevent recurrence of similar acts."
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