DSME cops $14m fine over mistreatment of subcontractors

Daewoo Shipbuilding & Marine Engineering (DSME) was been fined KRW15.3bn ($13.8m) in the latest instance of Korean yards mistreating subcontractors.

DSME forced subcontractors to accept contract prices below labour costs from 2016 through to last year, the Fair Trade Commission (FTC) said yesterday.

Apart from the fine, the FTC said it will sue DSME for breaching fair trade laws.

South Korean shipbuilders have a long history of poor treatment of subcontractors with authorities issuing fines repeatedly over the years.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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