The Fair Trade Commission (FTC) has launched an investigation into Hyundai Heavy Industries Co., which is suspected of paying only 60 to 70 percent of its subcontracted payments to a number of subcontractors, or illegally reducing subcontracted payments.
According to shipbuilding industry sources on Oct. 1, about 10 employees of the FTC's Corporate Transaction Policy Bureau started an investigation at Hyundai Heavy Industries headquarters in Ulsan.
The FTC is said to have launched the investigation following its plan to deal with a number of repeated cases at the FTC headquarters in the Government Complex Sejong.
The FTC reportedly have detected the Hyundai Heavy Industries' violation of the subcontracting law on suspicion of making unfair subcontracted payment for a number of its primary and secondary subcontractors and misusing their technologies.
Earlier, there were suspicions that Hyundai Heavy Industries did not pay subcontractors properly since 2015 when the shipbuilding business was stagnant.
