The Fair Trade Commission (FTC) has finalized a settlement agreement regarding Hyosung and Hyosung Heavy Industries, who were investigated for unfairly demanding and using technical documents from subcontractors. Instead of imposing sanctions, the FTC has accepted a self-corrective plan by Hyosung, which includes a 3.4 billion won support package for the subcontractors affected by the wrongful demands. This is the first application of the agreement system introduced in July 2022, which allows companies under FTC investigation to resolve issues without penalties if they propose satisfactory corrective measures.

Hyosung was accused of requesting technical documents from over twelve different subcontractors engaged in the manufacturing of power and electromechanical devices from 2020 to 2022 without proper justification. The FTC determined that, although the company did engage in wrongful behavior, no actual harm was inflicted on the subcontractors as the technical documents were not used to create any parts, thereby concluding that the violations were not significant or clear-cut enough to warrant severe penalties.

Under the terms of the settlement, Hyosung has committed to using technical documents from subcontractors only for pre-approval and post-review purposes, ceasing any unjustifiable demands for these documents, and stopping the creation or registration of similar design documents obtained through wrongful means. Additionally, the company will enhance their management system for requesting technical documents and will regularly conduct internal audits with results reported to the FTC. This development underscores a trend in South Korea's regulatory environment, balancing corporate accountability with supporting subcontractor welfare.