Samsung Electronics has refuted allegations that it engaged in unfair practices against a subcontractor.
In a statement released on the 4th, Samsung Electronics explained, "We made every effort to comply with regulations and pursue mutual prosperity with our partner companies, and there was absolutely no violation of the law."
Subcontractor Company A has filed a complaint with the Fair Trade Commission, claiming it suffered unfair reduction of consignment orders in its dealings with Samsung Electronics. Company A had previously been approved as a cable supplier for Samsung's U.S. 5G mobile communications business and signed a subcontracting agreement with Samsung Electronics. However, Company A claims that Samsung Electronics reduced its orders midway, citing that U.S. carrier Verizon changed the type of cables used in its 5G equipment. The company alleges this led to the bankruptcy of its U.S. subsidiary.