DSME fined for mistreating subcontractors – report


Daewoo Shipbuilding & Marine Engineering (DSME) was hit with a 15.3-billion-won ($13.8 million) fine for mistreating its subcontractors, including forcing them to accept contract prices below labor cost, the Fair Trade Commission (FTC) said Sunday.

According to the government office, the shipbuilder was found to have violated the Fair Transactions in Subcontracting Act, a law aimed at preventing companies from abusing their power over smaller suppliers. Apart from the fine, the FTC said it will sue DSME for breaching fair trade laws.

The investigation was initiated after a series of complaints were submitted by DSME’s subcontractors.




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