SEJONG-- South Korea's antitrust watchdog said Sunday that it has rejected a commitment agreement request by Hyundai Mobis Co., the country's largest auto parts maker, citing inadequate remedy proposals to make up for damage caused by its abuse of market power.
The company has been under investigation by the Fair Trade Commission (FTC) for forcing its dealerships to meet unreasonable sales targets between January 2010 and November 2013, according to the watchdog.
In a commitment request filed in June, Hyundai Mobis said it will compensate the dealerships and create a fund worth 10 billion won (US$8.87 million) to help them. But the FTC turned it down and ordered the company to file an improved proposal.
A commitment decision is a process in which the FTC can finalize a case swiftly without making any determinations on illegality if the companies under investigation voluntarily come up with reasonable corrective measures.
However, the FTC dismissed the second suggestion by Hyundai Mobis, saying that its remedial actions are insufficient.
The watchdog will move forward with the original review process, which had been suspended due the commitment decision request, to decide on the level punishment for Hyundai Mobis' fair trade law violations.
Source: Yonhap News Agency