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Renault Korea ordered to take corrective measures for unfair practices against dealers

May 22, 2024

The antitrust regulator said Wednesday it has decided to order Renault Korea Motors Co. to take corrective steps for excessively charging its dealerships for urgent orders of auto parts.

The South Korean unit of Renault S.A. had levied a combined 394.64 million won (US$289,935) in penalties against 305 authorized dealerships between June 2012 and December 2022 for placing urgent orders for key auto components when they needed to receive them within around 24 hours, according to the Fair Trade Commission.

The automaker excessively raised parts prices for these urgent orders, which affected the dealerships’ sales margins unfairly, though their contracts do not stipulate such an adjustment.

“Renault unduly used its position to cause disadvantages to dealers,” the FTC said. “We will continue to monitor such practices and sternly enforce regulations in case of any recurrences.”