FTC Investigates Hanwha Group's Internal Transactions Over Brand Usage Fees
Investigation into Hanwha Group's brand usage fees, issues of unfair internal transactions and the FTC's judgment We examine the transaction structure among affiliates and the calculation standards to identify risks
The Fair Trade Commission is investigating whether brand usage fee transactions among Hanwha Group affiliates constitute unfair internal transactions.
According to the industry, the FTC has been conducting onsite investigations since June 23 into several affiliates, including Hanwha, Hanwha Solutions, Hanwha Life Insurance, and Hanwha General Insurance. The investigation is said to last about a week.
It is reported that the FTC is examining whether the method of calculating brand usage fees led to improper support for affiliates or the private gain of the owner family, and whether the characteristics of the industry and the actual value of brand usage were properly reflected. Hanwha affiliates have entered into license agreements with Hanwha and paid brand usage fees.