The clothing company Wivis, which unilaterally refused to receive mask fabric during the COVID-19 pandemic, has been sanctioned by the Fair Trade Commission.
According to the Fair Trade Commission on the 6th, Wivis was imposed a penalty surcharge of 250 million won along with a correction order for violating subcontracting law. Wivis entrusted a subcontractor with fabric production for reusable masks in March 2020 but refused to receive about 40,000 yards of fabric (worth approximately 248 million won).
According to the Fair Trade Commission's investigation, Wivis changed the order to a thinner product than the originally ordered fabric and refused to receive the existing fabric. Wivis reportedly shifted the responsibility to the subcontractor, citing that "the color fades during washing," and even obtained an agreement stating that they would "not raise any objections." However, it was confirmed that masks made from that fabric were subsequently distributed in the market.
In addition, Wivis was also caught providing documents to subcontractors that omitted legal requirements or failing to provide any documents at all between March 2020 and May 2022 while assigning fabric production.
A representative from the Fair Trade Commission stated, "The main contractor refused delivery without justifiable reasons by using its superior position and also violated basic legal procedures, such as providing documentation. This is a typical case of unfair transaction, and we have sanctioned this abuse of power in a special situation during the pandemic."