Korea Fair Trade Commission Imposes Penalty on MHI for Past Sales Activities of Vehicle Air-conditioner Compressors
Korea Fair Trade Commission Imposes Penalty on MHI for Past Sales Activities of Vehicle Air-conditioner Compressors
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Tokyo, November 1, 2016 - Today the Korea Fair Trade Commission (KFTC) announced its decision to impose a penalty against Mitsubishi Heavy Industries, Ltd. (MHI) for violation of Korea's Monopoly Regulation and Fair Trade Act (MRFTA) in the matter of sales activities relating to vehicle air-conditioner compressors. The ruling comes despite a judicial trade agreement between MHI and the U.S. Ministry of Justice regarding sales of said compressors and other products signed on September 26, 2013 (U.S. Eastern Standard Time).
The case had been subject to investigation by the KFTC due to suspicion that Korea's MRFTA may have been violated. MHI cooperated fully in the investigation.
Although the KFTC's announcement found that past actions by MHI had been in violation of MRFTA, MHI had already ceased said actions prior to the commencement of the investigation. Furthermore, MHI had appealed to the KFTC to exempt or reduce the penalty amount, and full exemption from the penalty was approved as it was deemed that the Company had fulfilled the necessary requirements.
This matter will effect no changes to MHI's consolidated earnings forecasts for the current fiscal year ending next March.
The MHI Group will continue to ensure full compliance in the future.
Although the KFTC's announcement found that past actions by MHI had been in violation of MRFTA, MHI had already ceased said actions prior to the commencement of the investigation. Furthermore, MHI had appealed to the KFTC to exempt or reduce the penalty amount, and full exemption from the penalty was approved as it was deemed that the Company had fulfilled the necessary requirements.
This matter will effect no changes to MHI's consolidated earnings forecasts for the current fiscal year ending next March.
The MHI Group will continue to ensure full compliance in the future.