Auto parts manufacturer KL has received a corrective order for its unfair subcontracting practices.

The Fair Trade Commission (Chairman Han Ki-jung) announced on the 5th that it had issued a corrective order to KL Co., Ltd. for the following acts when outsourcing the assembly work and other subcontracting work related to wiring harnesses, a component of automobile wiring systems, to a subcontractor: △failing to issue written documents, △failing to notify inspection results in writing, △unfairly refusing to receive goods, and △failing to pay subcontracting fees.

According to the Fair Trade Commission, from around April 2022 to around July 2022, KL entrusted 16,520 items related to wiring harnesses, a component of an automobile wiring system, to one subcontractor, but did not issue a document detailing matters stipulated in Article 3 of the Enforcement Decree of the Subcontracting Act, such as the subcontracting fee and its payment method, until the work began.

In addition, even though the goods were received between April 14, 2022 and July 19, 2022, the inspection results were not notified in writing within 10 days from the date of receipt.

In addition, they unfairly refused to accept the goods by notifying the supplier that they would charge the supplier 20 million won in damages related to the goods, after determining that some of the goods previously delivered had defects and that the goods to be delivered around August 2022 would also have defects.

In addition, the company did not pay the subcontracting fee (KRW 18 million) for the goods delivered in July 2022, claiming that the loss cost (KRW 55 million) that it had arbitrarily calculated was caused by the subcontractor.

The Fair Trade Commission will not engage in the same or similar unfair subcontracting practices of KL in the future. He ordered preventive measures to prevent similar acts from happening again.

In addition, the company was ordered to pay the subcontractor's fees and late payment interest for the non-payment of subcontractor's fees.