Hanwha Ocean's shipyard in South Gyeongsang Province / Korea Times photo by Kim Hyung-jun
South Korea's antitrust regulator said Tuesday it has extended by three years the compliance period for corrective measures imposed as a condition of a major shipbuilder acquisition led by Hanwha Group in 2022.
In 2023, the Korea Fair Trade Commission (FTC) ordered corrective measures after Hanwha Aerospace Co. and five other affiliates acquired a 49.3 percent stake and management control of then troubled Daewoo Shipbuilding & Marine Engineering, which has since been renamed Hanwha Ocean.
Under the latest decision, Hanwha Aerospace, Hanwha Systems Co. and Hanwha Ocean will be prohibited from engaging in practices such as discriminatory pricing for ship components for another three years, the FTC said.
The FTC said the corrective measures will now remain in effect until May 2, 2029, and added that it may extend the restrictions by up to two additional years if necessary following a review of market competition conditions and legal changes.
The latest decision marks the first time the regulator has extended the enforcement period of corrective measures imposed on a corporate merger.
The commission said it continues to see risks of anticompetitive behavior, including concerns over discriminatory information sharing and pricing practices that could put rivals at a disadvantage.
Three years ago, the commission ordered corrective measures covering naval vessels and 10 ship component markets, but it narrowed the scope this year to naval vessels and eight ship component markets.
At the time of reviewing the acquisition, the FTC raised concerns that Hanwha could monopolize the naval vessel components market by leveraging its dominant position in the defense industry.
Source: Korea Times News
