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South Korea fines three companies in first subcontract price adjustment case

( September 22, 2025, 08:12 GMT | Official Statement) -- MLex Summary: Simmons, Sidiz and Hanil Cement have each been fined 5 million won ($3,600) by South Korea’s competition regulator for failing to include mandatory price adjustment terms in their subcontracting contracts. According to the Korea Fair Trade Commission, the omissions were found in deals covering bed-frame manufacturing by Simmons, sponge cutting by Sidiz and cement packaging by Hanil Cement, all of which involved raw materials that heavily affect subcontract prices. The regulator said this is the first sanction since the subcontract price adjustment system took effect in October 2023. The system automatically adjusts subcontract payments when raw material prices fluctuate, so subcontractors do not need to request changes and their bargaining power and rights are better protected.The statement, in Korean, is attached....

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