The Seoul Metropolitan Serious Crime Investigation Office has transferred a corporation and its affiliate to the prosecution service on charges of failing to pay approximately 300 million won in subcontract fees to a subcontractor.

This marks the first time the investigation office has referred a fair trade case since its establishment.

The Anti-Monopoly Investigation Bureau of the Seoul Metropolitan Serious Crime Investigation Office (Acting Director Kim Jung-hwan) announced today (Nov. 2) that it referred Corporation A and its affiliate Corporation B, both facing charges of violating the Fair Subcontract Transactions Act, to the Seoul Eastern District Prosecutors' Office on October 27.

The Seoul Eastern District Prosecutors' Office, which received the case, summarily indicted them on October 29.

Summary indictment is a procedure in which prosecutors request the court to issue a fine through a paper review rather than a formal trial.

The corporations are accused of unfairly cutting 17 million won from the subcontract payment owed to the subcontractor and withholding approximately 300 million won in payments.

They are also accused of demanding approximately 100 million won in unfair defect repairs from the subcontractor.

The case was originally filed by the Fair Trade Commission and investigated by the Seoul Eastern District Prosecutors' Office (formerly the Eastern District Prosecutors' Office) starting last February. It was transferred to the Serious Crime Investigation Office on October 19 following revisions to the Criminal Procedure Act.

The statute of limitations for this case was scheduled to expire on November 1.

The Serious Crime Investigation Office explained that through close cooperation with the prosecution service and supplementary investigations such as questioning project owners, it was able to thoroughly substantiate the charges against the primary contractor.

An official from the Seoul Serious Crime Investigation Office stated, "Because unfair practices in subcontract transactions not only harm individual companies but also undermine the soundness of the overall industrial ecosystem, the Seoul Serious Crime Investigation Office will continue to cooperate closely with the prosecution service to thoroughly crack down on crimes that disrupt fair trade order."

(Photo: Yonhap News)