HHI fined 970-M won for stealing technology to force price reduction

South Korean shipbuilder Hyundai Heavy Industries Co. (HHI) was fined 970 million won for unfair trade with its subcontractors, the country's Fair Trade Commission (FTC) announced.

The FTC said that HHI stole technologies for the production of pistons used on diesel ship engines from its original subcontractor and passed on the knowhow to another subcontractor in 2016 to produce the same product at a reduced price.

HHI eventually cut trade with its original subcontractor one year later.

The original subcontractor's sales fell 57 percent three months after that, with its operating profit plummeting nearly seven-fold.

The original subcontractor reported the unfair trade to the police and the FTC.

A Hyundai Heavy said that while they respect FTC's judgment, it was somehow different from their stance and would "try to bridge the gap" after reviewing FTC's statement.