The Fair Trade Commission introduces a norm to induce’open work’ in which the work of internal transactions of large companies is shared with SMEs. Sooner or later, Chairman Sungwook Sung of the Fair Trade Commission meets with a large logistics company and announces this.
According to government ministries on the 10th, Chairman Cho plans to meet with logistics companies belonging to large corporate groups and their shippers as soon as the quarantine situation stabilizes and hold a ceremony to open a work agreement and announce policies. Companies that make significant sales through internal transactions between affiliates, including Hyundai Glovis of the Hyundai Motor Group, are expected to sign agreements with the FTC.
The norm that the Fair Trade Commission intends to establish is that the results of dividing the work of internal transactions with SMEs are indexed for each company and used in evaluation of the implementation of the Fair Trade Agreement, and the best companies are given incentives such as exemption from ex officio investigation. For industries with a high proportion of internal transactions, such as logistics and system integration (SI), a voluntary compliance standard is also established.
With the total revision of the Fair Trade Act, the total number of companies subject to private interest deprivation is increasing from 210 to 591, and the Fair Trade Commission expects the effect of preventing illegal acts if the work is opened and internal transactions are properly discussed at the board of directors. .
However, such a norm is a soft norm without coercion, and it is entirely up to companies to choose whether to give the work of internal transactions between subsidiaries of large corporate groups to non-affiliated SMEs.
Although the FTC has been sanctioning the work of many business groups for many years, the amount of internal transactions of business groups subject to disclosure amounted to 19.67 trillion won as of 2019, and it is still a common practice to divide the work of large business groups within the group.
In November of last year, Chairman Cho pointed out that “the opening of work in large corporate groups is only felt far away.” Do.
Logistics companies tend to raise a significant portion of their total sales to affiliates. Representatively, as of 2019, Hyundai Glovis accounted for 21.57% of internal transactions to sales. The company had a 29.99% stake in the total family family, which has been in the blind spot of sanctions to drive work. ‘And enters sanctions.
An official from the Fair Trade Commission said, “We are going to make an agreement with the industry to induce voluntary participation of large business groups even a little more,” and “afterwards, we will arrange a meeting such as a meeting to examine the situation of open work.”