The Korea Fair Trade Commission said on the 10th it will open a consent decision process for Samsung Heavy Industries over violations of the Fair Transactions in Subcontracting Act. Earlier, Samsung Heavy Industries was investigated by the Korea Fair Trade Commission (FTC) for violating the Fair Transactions in Subcontracting Act by issuing contracts late when signing agreements with in-house partners during shipbuilding.
The consent decision system allows corporations under investigation or deliberation by the Korea Fair Trade Commission to propose their own remedies such as compensation for harm and measures to prevent recurrence, and if the Korea Fair Trade Commission (FTC) finds them reasonable, the case is closed without confirming whether the law was violated.
On the day, Samsung Heavy Industries said it will improve its contract management system related to delayed issuance in writing and prepare a win-win plan with partners totaling 113 billion won.
Samsung Heavy Industries presented measures to improve transaction order, including upgrading the contract management system, fully adopting the standard subcontracting contract, training for employees and partners, and forming a permanent consultative body between prime contractors and subcontractors.
It also prepared a total of 11.3 billion won in win-win measures, including raising the companion support fund (3.05 billion won annually), creating holiday homecoming and vacation allowances (5.25 billion won annually), implementing a skilled technicians' matched savings program (workers deposit 1.6 million won and receive 8 million won, totaling 2 billion won), and expanding the joint employee welfare fund (adding 1 billion won to the existing 2 billion won for items such as children's tuition).
The Korea Fair Trade Commission (FTC) decided to open the consent decision process, judging that Samsung Heavy Industries' remedies met the requirements for initiating the consent decision procedure.