This article was published on April 4, 2025, at 9:05 a.m. on the ChosunBiz RM Report site.
The Fair Trade Commission has confirmed that it conducted on-site investigations regarding allegations that major domestic agricultural machinery companies Daedong, TYM, and Asia Technology improperly demanded technical materials during subcontracting transactions.
According to the industry on the 4th, the Fair Trade Commission recently conducted on-site investigations at the headquarters of TYM and Asia Technology. Earlier, at the end of last year, an on-site investigation was also conducted into Daedong, the industry leader, for similar allegations. LS Mtron is the second-largest company in the industry, while TYM and Asia Technology hold the third and fourth positions, respectively.
The Fair Trade Commission is examining whether these corporations followed proper procedures while receiving technical materials from subcontractors. According to Article 12-3 of the Subcontracting Act, when a primary contractor requests technical materials from a subcontractor, they must comply with requirements such as prior consultation, written transfer, and the signing of a confidentiality agreement. It is also prohibited to transfer technical materials to a third party or use them for their own purposes.
This investigation is not limited to specific violations but is being conducted as a broad investigation into the overall demand for technical materials. It has been reported that the Fair Trade Commission is simultaneously checking various potential violations, including non-provision of written documents, non-signing of confidentiality agreements, misappropriation of technical materials, and inappropriate conditions imposed. Additionally, overall transaction conditions, such as reductions in subcontract fees, are also included in the investigation.
The Fair Trade Commission has previously imposed sanctions on the agricultural machinery industry for the misappropriation of technology. In 2021, LS Mtron was caught applying for a patent under its name for a subcontractor's technology, resulting in a corrective order and a penalty surcharge of 1.386 billion won, the largest amount ever imposed by the Fair Trade Commission for misappropriation of technology.
An official from the Fair Trade Commission stated, "I cannot confirm ongoing cases," but noted, "If violations of the law are confirmed, we will take strict action according to relevant laws."