*This content was translated by AI.
The Fair Trade Commission voted on March 2, 2026, to impose a fine of 1.47 billion won along with a corrective order for Hanon System, a company specializing in automobile air conditioning products, for violating the subcontracting law. The move comes after Hanon System detected a total of 1,236 violations of the subcontracting law that occurred in the process of entrusting nine suppliers to manufacture molds related to automobile air conditioning systems for three years from May 2020 to May 2023.
As a result of the investigation, it was found that Hanon System did not properly fulfill its obligation to issue documents, which are the basis of subcontracting transactions. It was confirmed that 531 of the total transactions issued poor documents missing signatures or seals, and the remaining 705 cases did not issue the documents themselves at all. In addition, not only did they fail to issue a receipt certificate for the goods received, but they also violated the requirement that the results of the inspection be notified in writing within 10 days of the delivery of the goods in 1,067 transactions.
Violations related to payments that were directly linked to economic losses were also included. Hanon System did not pay about 95 million won in fees incurred in the process of paying subcontract payments as alternative payment methods, and it was found that about 1.39 billion won in interest due to delays in payment was also unpaid.
In response, Hanon System is taking a strong stance to file an administrative lawsuit, saying that the FTC's decision did not fully reflect the specificity of the industrial site. The company explained that due to the nature of the mold manufacturing process, there was only a difference in practical interpretation of the criteria for judging the "date of receipt of the object", and there was no intentional violation of the law or substantial damage from suppliers. In addition, he added that he is currently striving to prevent recurrence by greatly supplementing the internal contract management system, such as establishing an electronic signature function in the computer system.
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*This content was translated by AI.
