The Fair Trade Commission (FTC) has found that Hyundai Heavy Industries (HHI) and its subsidiary Hyundai Construction Equipment stole drawings of key parts produced by suppliers and delivered them to a third party.
Related to this, the FTC filed a complaint with the prosecution against executives of HHI and Hyundai Construction Equipment and fined the companies.
The FTC announced on May 29 that it detected that HHI secretly supplied drawings of suppliers to other harness manufacturer in order to lower the price of harness, a key component of its excavator, in 2015.
HHI cut the harness supply price by up to 5 percent in April 2016 as it sought to mobilize harness from a third company, while demanding price cuts from existing companies.
"In April 2018, when the FTC's investigation was being conducted, the company also secretly provided the drawings to a third company," said Yoon Soo-hyun, director general of the Corporate Trade Policy Bureau. "It was not until the FTC confirmed the fact that it stopped trying to change the supplier," Yoon added.
The two Hyundai companies also siphoned off a parts maker's drawings during the bidding process for the prototype and provided them to other parts maker.
The FTC has decided to impose 431 million won in fines on HHI and Hyundai Construction Equipment and file a complaint with the prosecution against the two companies and two other executives in charge.