The government has given an "incentive for mutual growth" to Korea's major shipbuilders including Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries while they are accused of an unfair business practice, according to a local lawmaker.
Lee Jin-bok, a lawmaker of the ruling Saenuri Party, said, "The three shipbuilders forced their partner companies not correctly to respond to the questionnaire on the 'mutual growth index.' They even forced the partner companies to sign an agreement.”
Lee added, "Amid the unfair business practice, the government has still provided incentives for the companies alongside various benefits."
The three shipbuilders passed on their damage to their partner companies by cutting cost, said Lee, who found out the unfair practice through the meeting with small partner companies.
In effect, the three firms all received ratings of “excellent" during the evaluation for mutual growth jointly conducted by Korea Commission for Corporate Partnership and Fair Trade Commission during 2013 and 2014.
When selected as "excellent companies," they are exempted from the investigation in the subcontract sector, given add points for doing business for technology development and also given special preference for public bidding by the Public Procurement Service.
