The Japan Fair Trade Commission issued a recommendation to YKKAP, a major building materials company based in Tokyo, for violating the Subcontracting Law by requesting that 4,997 tools and molds used in manufacturing components be stored free of charge by contracting companies. This infringement involved not only YKKAP but also its fully owned subsidiary, Ryukyu YKKAP Engineering in Okinawa, which similarly had tools stored without compensation. Following the investigation, YKKAP has already compensated the contracting firms approximately 34.14 million yen for the storage costs and disposed of 1,784 molds deemed unnecessary.

The commission's findings revealed that between February 2024 and January of this year, YKKAP had 67 subcontracted companies storing the molds, which included significant and heavy items, weighing up to about 450 kilograms. These molds were often left untouched for over a year, with some existing for as long as 35 years without any orders. This practice raised concerns regarding the fairness of business transactions in the manufacturing sector, especially regarding the treatment and compensation of subcontractors.

Consequently, the Japan Fair Trade Commission's recommendation underscores the importance of adhering to fair trading practices within the industry. YKKAP's actions not only impacted the financial realities of the subcontractors involved but also highlighted the need for regulatory compliance to protect small and medium enterprises in the supply chain. Immediate steps to prevent similar incidents in the future were requested as a means to ensure fairness and justice in business operations.