Hyundai Wia fined $316,000 for abuse of market power

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Hyundai Wia fined $316,000 for abuse of market power

Korea’s corporate watchdog said Sunday that it slapped 360 million won ($316,000) in fines on Hyundai Wia, an auto parts affiliate of Hyundai Motor Group, for abusing its market power to control subcontractors.

Hyundai Wia is accused of “unilaterally” cutting prices during an auction with a smaller subcontractor between September 2013 and June 2016, the Fair Trade Commission said.

The FTC probe also showed that the company was involved in other unfair business practices with the subcontractor, such as unlawfully transferring costs to the smaller company.

Along with the fines, the FTC asked the state prosecutors to conduct an investigation into Hyundai Wia on allegations it forced various partners to agree to unfair business arrangements. The watchdog said that while Hyundai Wia did rectify its actions, the damage it caused needed to be penalized.

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