The Korea Fair Trade Commission (FTC), South Korea's antitrust regulator, has given the Hanwha Group an extension of three years to the current compliance period during which the company must implement corrective measures following the acquisition of a local shipbuilder in 2022.
In 2023, the FTC ordered the implementation of corrective measures after Hanwha Aerospace and five other affiliates acquired a 49.3 per cent stake and management control of then-troubled Daewoo Shipbuilding and Marine Engineering, which has since been renamed Hanwha Ocean.
Under the latest decision, Hanwha Aerospace, Hanwha Systems, 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 that the corrective measures will now remain in effect until May 2, 2029, and 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 commission said that it continues to see risks of anti-competitive behaviour on the part of Hanwha, 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. This year, it narrowed the scope to naval vessels and eight ship component markets.
At the time of its review of the acquisition, the FTC raised concerns that Hanwha could monopolise the naval vessel components market by leveraging its dominant position in the defence industry.
