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| 사진=한화에어로스페이스 |
[Alpha Biz= Kim Jisun] SEOUL, South Korea — November 3, 2025 — The Korea Fair Trade Commission (KFTC) has launched an investigation into alleged abuses of subcontractors within the defense industry, targeting major defense contractors Hanwha Aerospace and Korea Aerospace Industries (KAI) for potential violations of the Subcontracting Act.
According to industry sources, KFTC investigators conducted on-site inspections on Monday at Hanwha Aerospace’s headquarters in Changwon, South Gyeongsang Province, and KAI’s headquarters in Sacheon, amid suspicions that both companies unfairly exploited subcontractors over the past three years.
The allegations include misuse of technical data, delayed or unpaid subcontracting fees, and coercive price reductions — practices often referred to as “gapjil,” or abuse of power by large corporations toward smaller partners.
While both companies are being investigated separately, KAI also faces additional scrutiny for potential violations of the Fair Trade Act, officials said.
The investigation follows President Lee Jae-myung’s recent remarks emphasizing the need to eradicate abusive practices in the defense sector.
In a statement last month, President Lee said, “Since taxpayer money is invested in the defense sector, companies must play a role in sustaining the industrial ecosystem. If large corporations engage in cost-cutting exploitation or abuse their market position, the KFTC will expand enforcement personnel and impose severe penalties.”
Observers view the KFTC’s latest move as part of the government’s broader initiative to ensure fair competition and transparency in defense procurement.
The commission believes that systematic unfair practices — such as delayed payments and improper requests for proprietary technology — have become widespread in the industry as companies compete to reduce costs against global rivals.
Officials added that the aerospace sector appears to be most affected, prompting the KFTC to prioritize it as a first-stage investigation target. Depending on the findings, the probe could expand to other defense and industrial sectors.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
