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STX Engine fined for violating subcontract law

Seoul - 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.

Seoul - 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.
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