TITLE: South Korea's Fair Trade Commission Sanctions Ingi Controls for Unfair Subcontracting Practices BODY: On March 10, 2026, the Fair Trade Commission (FTC) of South Korea announced enforcement action against Ingi Controls Co., Ltd. for violations of the Framework Act on the Promotion of Fair Subcontracting Transactions (Subcontracting Act). The FTC determined that Ingi Controls engaged in unfair subcontracting practices between June 16, 2020, and May 19, 2023, while outsourcing automotive component mould manufacturing to 16 subcontractors. The violations included: failing to issue written subcontracting agreements in 45 transactions and issuing incomplete agreements in 75 transactions; imposing unfair contractual terms that prevented subcontractors from contesting inspection results, restricted their right to claim damages, and made contract termination contingent on Ingi Controls' discretion; failing to notify 10 subcontractors of inspection results in writing; and failing to pay delayed interest totalling 68.41 million won and alternative payment instrument fees of 10.31 million won to 15 subcontractors beyond the statutory payment deadline. In response, the FTC issued a corrective order and imposed administrative fines totalling 144 million won. The fine comprises 120 million won for the failure to issue written agreements and 24 million won for non-payment of delayed interest and fees. The FTC emphasised that this enforcement action targets customary practices within the mould manufacturing industry, including oral contracts and payment delays, and aims to heighten awareness among primary contractors to prevent recurrence. The FTC stated it will continue monitoring unfair subcontracting practices in the mould sector, identified as a critical root industry for South Korea, and will take strict action upon identifying further violations.

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