Fair Trade Commission imposes a fine of 362 million KRW on Daesung Trading for subcontracting power abuse

[Image source=Yonhap News]

Daesung Trading, a clothing retailer that repeatedly engaged in power abuse such as non-payment to subcontractors, will be sanctioned by the Fair Trade Commission.

On the 22nd, the Fair Trade Commission announced that it imposed a corrective order and a fine of 362 million won on Daesung Trading for violating the Subcontracting Act.

Daesung Trading, which sells clothing through home shopping channels, committed power abuse from January 2022 to April 2022 by failing to notify subcontractors in writing of the inspection results of the goods or by withholding subcontracting payments while commissioning the manufacture of clothing to be sold on home shopping. The unpaid subcontracting payments by Daesung Trading were confirmed to be about 600 million won.

The Fair Trade Commission explained, "This measure is significant in that it penalized the act of the original business operator unilaterally applying inspection standards, which were not established or were unclear, and shifting responsibility for defects in the goods onto the subcontractors."