Regulator fines POSCO arm for interfering in subcontractors' management

▲ This file photo taken on Dec. 2, 2021, shows a plant of POSCO Chemical Co. in Pohang, 374 kilometers south of Seoul. (Yonhap)

regulator-POSCO Chemical

Regulator fines POSCO arm for interfering in subcontractors' management

SEOUL, Nov. 6 (Yonhap) -- South Korea's antitrust regulator said Sunday it has decided to slap fines of 580 million won (US$407,000) on a chemical arm of the country's top steelmaker POSCO for unfairly interfering in the management of its subcontractors.

The penalty on POSCO Chemical Co. came after the company forced 19 subcontractors to hire its employees as executives to execute its influence, according to the Fair Trade Commission (FTC).

The FTC said POSCO Chemical also reorganized stock ownership structures of the companies so that their owners cannot make decisions independently and continuously monitored if the subcontractors followed its own rules.

"POSCO Chemical's actions are considered unfair management interferences, as the company has taken advantage of its superior status and made subcontractors comply with specific guidelines in their overall management," the FTC said in a press release.

The regulator said that the latest measure was aimed at improving the deep-rooted practice in which conglomerates treat subcontractors as their subsidiaries.

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