[THE INVESTOR] The Small and Medium Business Administration on Oct.19 said it requested the state antitrust agency to press charges against CJ Korea Express and Echroba for unfair business practices with their subcontractors.

Under the SMBA’s request, the Korea Fair Trade Commission is required to file a complaint with the prosecution.

CJ Korea Express, the logistics arm of CJ Group, is accused of delaying and failing to write a contract with its subcontractor KLS, as well as illegally canceling the order. The FTC had earlier ordered CJ Korea Express to prevent recurrence. But due to the high damage of 3.6 billion won (US$3.20 million) incurred by KLS as a result of the mistreatment, the SMBA decided to take further punitive measure.

Echroba, local outdoor brand, is blamed of delaying payments and terminating the contract without further notice to EZ Sport several times, while outsourcing the production of hiking shoes.

The FTC had fined Echroba 54 million won for its unfair practice toward EZ Sport. However, EZ Sport had to close down business after being hit with 950 million won in damages.

By Ahn Sung-mi (sahn@heraldcorp.com)