By Lee Min-hyung
A Seoul court has dismissed a lawsuit filed by Hanwha Solutions seeking to reject fines placed on it over its alleged involvement in unfair trading practices with HanExpress, a logistics and shipping firm headed by an older sister of Hanwha Group Chairman Kim Seung-yeon.
In December 2020, the Fair Trade Commission (FTC) imposed fines of 15.7 billion won ($11.85 million) on Hanwha Solutions, saying that the company unduly signed a private logistics contract with the shipping firm and offered an excessively high level regarding shipping costs. HanExpress was also fined 7.3 billion won.
On Monday, the Seoul High Court ruled that Hanwha Solutions' contract with HanExpress could be seen as irrational in that the scale and the period of the contract were too excessive. The unfair practice helped HanExpress to secure a stable sales channel and increase its operating profit, which the court said impeded the market's fair trade ecosystem.
According to the FTC investigation, Hanwha Solutions provided unfair internal transactions worth 17.8 billion won to HanExpress for more than a decade, as the logistics were controlled by Kim's relative. HanExpress was owned by Kim under a borrowed name and it was managed by Hanwha Group's control tower until May 2009 before it was sold to Kim's older sister, the antitrust watchdog said.
After losing the lawsuit, Hanwha immediately appealed the case to the Supreme Court. In response, the FTC also shared its plans to actively deal with the upcoming trial.
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| Hanwha Group headquarters in Seoul / Courtesy of Hanwha Group |
In December 2020, the Fair Trade Commission (FTC) imposed fines of 15.7 billion won ($11.85 million) on Hanwha Solutions, saying that the company unduly signed a private logistics contract with the shipping firm and offered an excessively high level regarding shipping costs. HanExpress was also fined 7.3 billion won.
On Monday, the Seoul High Court ruled that Hanwha Solutions' contract with HanExpress could be seen as irrational in that the scale and the period of the contract were too excessive. The unfair practice helped HanExpress to secure a stable sales channel and increase its operating profit, which the court said impeded the market's fair trade ecosystem.
 |
| HanExpress' logistics center in Hwaseong, Gyeonggi Province / Courtesy of HanExpress |
According to the FTC investigation, Hanwha Solutions provided unfair internal transactions worth 17.8 billion won to HanExpress for more than a decade, as the logistics were controlled by Kim's relative. HanExpress was owned by Kim under a borrowed name and it was managed by Hanwha Group's control tower until May 2009 before it was sold to Kim's older sister, the antitrust watchdog said.
After losing the lawsuit, Hanwha immediately appealed the case to the Supreme Court. In response, the FTC also shared its plans to actively deal with the upcoming trial.
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