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STX Engine fined 20 mln won for violating subcontract law

Industry 12:00 March 24, 2019

By Kim Kwang-tae

SEJONG, March 24 (Yonhap) -- South Korea's antitrust regulator said Sunday that it has fined STX Engine Co. 20 million won (US$18,000) for violating the country's subcontracting law.

STX Engine is accused of not having provided documents to 10 subcontractors when the maker of marine and military diesel engines demanded the subcontractors' technical drawings of parts to be used in engines from January 2015 to August 2017, according to the Fair Trade Commission (FTC).

When a principal contractor requests any technical data from a subcontractor, it is required by the law to consult, in advance, with the subcontractor about the purpose of request, confidentiality provisions, reversion of rights, a cost, etc., and provide the relevant subcontractor with a document stating the details.

The FTC said its decision is a wake-up call that a principal contractor should make efforts to protect technologies of its partner companies.

An STX Engine official did not respond to multiple requests for comment.

A lawyer at Yoon & Yang LLC, a law firm that represents STX Engine, said he could not comment on the issue on behalf of his client.

This photo provided by the Fair Trade Commission shows technical data and a vessel. (Yonhap)

entropy@yna.co.kr
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