Joo Woo-jeong, back row seventh from left, CEO of Hyundai Engineering, poses with Korea Fair Trade Commission (FTC) head Ju Biung-ghi, front row sixth from left, and other participants during a signing ceremony for a fair trade agreement with the FTC at Korea Specialty Contractors Association Hall in Seoul, May 28. Courtesy of Hyundai Engineering
Hyundai Engineering, a construction and engineering affiliate of Hyundai Motor Group, said Monday that it signed a comprehensive fair trade and mutual growth pact with Korea’s antitrust regulator to eliminate unfair subcontracting practices and protect vulnerable suppliers from sudden economic shocks.
The agreement, signed by the Fair Trade Commission, Korea Specialty Contractors Association and 18 other major builders, establishes a new regulatory framework to stabilize the industry’s fractured supply chains. Under the pact, participating companies have agreed to eliminate payment withholdings, establish rapid price adjustment mechanisms during market disruptions and ban predatory contract clauses.
Hyundai Engineering used the industrywide event to showcase its own aggressive internal overhaul, aimed at buffering its suppliers from liquidity crunches triggered by regional conflicts in the Middle East. To ensure steady cash flow for its partners, the company has absorbed shifting logistics and material costs. It has also altered its billing schedule, issuing payments before goods leave the factory floor rather than waiting until cargo ships are loaded.
