Fair Trade Commission Launches Probe into Hanwha Group’s Brand Royalty Fees... On-Site Investigation into Unfair Support Allegations

On-site Investigation of Major Affiliates Including Hanwha Solutions

Appropriateness of Brand Royalty Fees Likely to Be Examined

The Korea Fair Trade Commission has launched an on-site investigation into the process by which Hanwha Group affiliates pay brand royalty fees.

According to industry sources on the 24th, the Fair Trade Commission began conducting field investigations on major affiliates of Hanwha Group, including Hanwha Corporation, Hanwha Solutions, Hanwha Life, and Hanwha General Insurance, starting from the previous day.

The main issue the commission is focusing on is reportedly the appropriateness of the calculation of brand royalty fees that affiliates pay to Hanwha Corporation. Currently, Hanwha affiliates sign license agreements with the holding company and calculate the royalty fees by applying a fixed rate to the amount remaining after subtracting advertising expenses and other costs from sales revenue.

The Fair Trade Commission is said to be closely examining whether excessive royalty fees have been paid compared to the actual value of the trademark, and whether this process has been used to strengthen the controlling family's influence or to facilitate private gains. If unfair support or private benefit is found, strong sanctions are expected to follow.

Meanwhile, regarding the investigation, a Fair Trade Commission official stated, "We are unable to confirm details about individual companies."

This content was produced with the assistance of AI translation services.