Sanctions against Amotech for requesting technical data from subcontractors without “handing over design drawings”

Examples of key components related to the incident. provided by the Fair Trade Commission

Amotech, which failed to comply with legal procedures while requesting technical data from subcontractors, was subject to sanctions by the Fair Trade Commission. Amotech is a first-tier supplier to Samsung Electronics, which manufactures and sells antenna parts. The Fair Trade Commission announced on the 8th that it would impose a correction order and a fine of 16 million won on Amotech for failing to provide a written request while receiving technical data such as drawings from subcontractors. As a result of the FTC investigation, Amotech requested 38 technical data, including drawings related to antenna parts, verbally or via e-mail from 10 small and medium-sized companies from January 2016 to October 2018. At the same time, he did not provide a document stipulating the relationship attributable to rights, confidentiality matters, and consideration. The Subcontracting Act prohibits the principal contractor from requesting technical data from the subcontractor without justifiable reasons. In addition, even if there is a justifiable reason, it is obligatory to provide a request form in advance containing the key points to be observed for the protection of technology of subcontractors.

The Fair Trade Commission said, “Part drawings are technical data protected by the subcontracting law.”

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