FTC launches probe into DSME on suspicion of its power trip on subcontractors
FTC launches probe into DSME on suspicion of its power trip on subcontractors
  • Lee Jun-sung
  • 승인 2019.01.14 11:44
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The Fair Trade Commission (FTC) has launched an investigation into Daewoo Shipbuilding & Marine Engineering (DSME). It is part of a massive investigation into the "big three" shipbuilders, following Hyundai Heavy Industries and Samsung Heavy Industries, in relation to its alleged power trip on subcontractors.

According to the shipbuilding industry sources on Jan. 11, the FTC has dispatched about 10 investigators to the DSME headquarters in Geoje Island and is conducting an investigation.

The investigation came two weeks after the FTC fined DSME 10.6 billion won for its power trip on subcontractors at the end of last year. 

Based on tips received from suppliers, the Busan office of the FTC investigated allegations that DSME did not make a contract in advance in the process of additional and revised work process and it unilaterally set the subcontract amount low after the work is completed.

The FTC is believed to be looking into the DSME structure of subcontractors. In particular, it has discovered new types of unit price rigging and technology theft in the investigation course of Hyundai Heavy Industries and Samsung Heavy Industries. 

As a result, the investigation is being conducted on the judgment that DSME may also face the same charges. Related to this, an official of the FTC said, "We cannot comment specifically on the matter under investigation."


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