Hyundai Construction Equipment fined over unfair biz practice

May 29, 2019
This photo shows Hyundai Construction Equipment Co.'s first autonomous forklift. (Yonhap)

This photo shows Hyundai Construction Equipment Co.’s first autonomous forklift. (Yonhap)

SEJONG, May 29 (Yonhap) — South Korea’s antitrust regulator said Wednesday it has fined Hyundai Construction Equipment Co. 431 million won (US$361,000) for taking advantage of technologies of its subcontractors.

The Fair Trade Commission (FTC) also referred two executives of Hyundai Construction Equipment to prosecutors.

The maker of excavators and wheel loaders is accused of handing over technical drawings of parts supplied by subcontractors to their competitors in an apparent attempt to lower the costs.

Hyundai Construction Equipment provided 13 technical drawings of wiring harness of its three suppliers to another company from October 2017 to April 2018 to ask if the third company could supply wiring harness.

The affiliate of South Korean shipbuilder Hyundai Heavy Industries Co. said it will closely look into a written document from the commission, which it said could be delivered to the company in June, before deciding its move.

Shares in Hyundai Construction Equipment remained unchanged at 40,450 won, outperforming the broader KOSPI’s 1.25 percent loss.