Fair Trade Commission in Sejong City, South Korea. [Photo by Yoo Dae-gil]
A manufacturer that requested technical data from its subcontractor without providing written documentation and failing to establish a non-disclosure agreement has faced sanctions from the Fair Trade Commission (FTC).
On June 4, the FTC announced it has imposed a fine of 126 million won ($106,000) on Woojin Electric, a manufacturer of railway vehicles and electric buses, for violating subcontracting regulations. The company requested and received 11 technical documents, including component manuals and specifications for batteries, via email without providing the required written documentation or signing a non-disclosure agreement.
The requested documents contained critical information about the components and technical specifications. According to the FTC, Woojin Electric's failure to provide written documentation when requesting these materials was a violation of the law. Furthermore, it was found that no non-disclosure agreements were signed for three of the documents.
As a result, the FTC decided to impose a fine along with a prohibition order based on Article 12-3, Paragraphs 2 and 3 of the Subcontracting Act.
An FTC official stated, "We will intensively monitor procedural violations to prevent the potential misuse of technology. We also plan to improve the fine system, including raising the maximum fines and rationalizing the criteria for imposing fines to deter violations of subcontracting laws, such as technology misappropriation."
On June 4, the FTC announced it has imposed a fine of 126 million won ($106,000) on Woojin Electric, a manufacturer of railway vehicles and electric buses, for violating subcontracting regulations. The company requested and received 11 technical documents, including component manuals and specifications for batteries, via email without providing the required written documentation or signing a non-disclosure agreement.
The requested documents contained critical information about the components and technical specifications. According to the FTC, Woojin Electric's failure to provide written documentation when requesting these materials was a violation of the law. Furthermore, it was found that no non-disclosure agreements were signed for three of the documents.
As a result, the FTC decided to impose a fine along with a prohibition order based on Article 12-3, Paragraphs 2 and 3 of the Subcontracting Act.
An FTC official stated, "We will intensively monitor procedural violations to prevent the potential misuse of technology. We also plan to improve the fine system, including raising the maximum fines and rationalizing the criteria for imposing fines to deter violations of subcontracting laws, such as technology misappropriation."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.