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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) announced on the 2nd that it has issued a corrective order to KG Mobility (KGM) for violating its obligation to issue contracts when outsourcing auto parts manufacturing.
According to the KFTC, between February 2021 and April 2022, KGM notified subcontractors of parts requirements, including part names, dates, and daily quantity needs. However, the company failed to issue written documents containing essential details such as subcontract payment amounts, payment methods, and deadlines.
The basic contract only included general legal obligations for prime contractors, such as the duty to issue written documents, the prohibition of unfair contract cancellations, and restrictions on demanding technical data.
The KFTC determined that this violated the Subcontracting Act, which mandates that subcontractors receive written agreements detailing contract terms before starting production.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
