FTC fines HDC for failing to pay interest to contractors

The Fair Trade Commission (FTC) fined HDC Hyundai Development Company Thursday for failing to pay interest on late settlements and other payment-related fees to contractor companies.

The corporate watchdog said HDC violated the contracting act by failing to pay 257 contractors unpaid interest and fees incurred from promissory note payments. The commission levied a fine of 635 million won ($568,000) on the company.

The FTC also ordered the construction company to pay contractors their due, amounting to 448.2 million won.

Under the country’s contracting law, companies that provide payments to contractors 60 days after the completion of their contracted work must also pay late-payment interest.

From July 2014 to April 2016, HDC postponed payment to contractors for as long as 180 days.

By Chae Yun-hwan