Fair Trade Commission referral leads to summary indictment by Seoul Eastern District Prosecution Office
The Serious Crimes Investigation Agency has referred a company suspected of unlawfully reducing subcontract payments to a prosecution office. The agency took over the case as its statute of limitations was approaching, conducted a supplementary investigation and then forwarded it.
The Seoul Serious Crimes Investigation Agency's Anti-Monopoly Investigation Bureau said Monday it referred a case against Company A to the Seoul Eastern District Prosecution Office on Tuesday over alleged violations of the Act on Fair Transactions in Subcontracting. The prosecution office summarily indicted Company A on Thursday. The case is believed to be the agency's first unfair trade referral.
According to the agency and the prosecution office, Company A is suspected of unlawfully reducing or withholding subcontract payments to subcontractors between November 2021 and January 2023.
Earlier, the Fair Trade Commission had filed a complaint against Company A with the Supreme Prosecutors' Office, which forwarded the case in February to the Seoul Eastern District Prosecution Office. The office's Criminal Division 4 had been conducting an investigation through September.
On Oct. 19, the agency took over from the prosecution office the portion of the subcontracting law violation charges whose statute of limitations was set to expire Sunday, and launched a supplementary investigation. The agency said it worked with the prosecution office to conduct inquiries, including interviews with project owners. For charges where the statute of limitations had already expired, the agency decided not to refer the case on the grounds that prosecution was no longer possible.
"Unfair practices in subcontracting transactions damage not only individual companies but also the overall health of the industrial ecosystem," a Seoul Serious Crimes Investigation Agency official said. "We will continue to work closely with the prosecution office to respond thoroughly to crimes that undermine fair trade order."
bell@heraldcorp.com
