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FTC rejects Hyundai Mobis' commitment decision request

2017/09/11 12:00

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SEJONG, Sept. 11 (Yonhap) -- South Korea's antitrust watchdog said Monday that it has decided to reject a commitment agreement request by Hyundai Mobis Co., the country's largest auto parts maker, which is suspected of abusing its market power.

The company has been under investigation by the Fair Trade Commission (FTC) for forcing its dealerships to meet an unreasonable sales target 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 10 billion-won (US$8.87 million) fund to help them.

A commitment decision refers to a process in which the FTC can finalize a case swiftly without making any determinations on illegality if companies under investigation voluntarily come up with reasonable corrective measures.

But the FTC turned down the request, saying that Hyundai Mobis' remedial actions are insufficient.

It ordered the company to submit an improved commitment proposal by October.