Hyundai Motor embroiled in controversy over 'unfair' practice against smaller companies
Hyundai Motor embroiled in controversy over 'unfair' practice against smaller companies
  • Jung Se-jin
  • 승인 2018.10.19 11:53
  • 댓글 0
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Rep. Je Yoon-kyung says, 'Hyundai Motor mobilized affiliates to pressure SMEs'
Rep. Je Yoon-kyung (left), Hyundai Motor Vice Chairman Chung Eui-sun (right)

There has been a series of allegations that Hyundai Motor Group is engaged in unfair practices against small- and medium-sized companies (SMEs). Some members of the political affairs committee demanded that Hyundai Motor Vice Chairman Chung Eui-sun explain the case as a witness.

During a parliamentary inspection of the Fair Trade Commission (FTC) held in the National Assembly on Oct. 15, many lawmakers criticized Hyundai Motor for unfair practices. 

Rep. Je Yoon-kyung of the ruling Democratic Party of Korea said, "Hyundai Motor is using its control over the existing bus market to force transportation companies to buy Hyundai electric buses, hindering the business of SMEs. Hyundai Motor is pressuring SMEs by mobilizing its affiliates." 

"Hyundai Motor is offering auto parts free of charge through Hyundai Mobis and easing the installment conditions of financing through Hyundai Capital, forcing SMEs to give up their plans to buy other companies' buses," Rep. Je said. 

Rep. Sung Il-jong of the Liberty Korea Party pointed out, "The operational profit ratio of suppliers to Hyundai Motor is just 1~3 percent, compared with 10~15 percent for Hyundai Motor and Hyundai Mobis. Also, the profit ratio is high at 11%, 14%, and 19 percent when we see a company that sells its own brand rather than supplying it to Hyundai Motor." 

Rep. Sung also argued that Hyundai Motor Vice Chairman Chung Eui-sun should explain this issue as a witness at the Parliamentary inspection.
 


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