4. The Court’s Decision
The Seoul High Court dismissed the plaintiff’s claim for the following reasons: i) the
respondent unduly delayed delivery of written terms, citing no loss on the part of
subcontractors; ii) without reasonable determination of cost elements, the plaintiff discounted
the subcontract payment by reducing the unit price at a uniform rate for cost reduction,; iii)
with no fault on the part of subcontractors, the plaintiff unilaterally shifted inventory burden
onto subcontractors; iv) as the plaintiff had no evidence to prove full payment to Cham Tech,
an undue payment discount was made; and v) there was undue management interference by
the plaintiff. The Supreme Court dismissed all the claims the plaintiff brought in the Seoul
High Court, thereby ruling that the KFTC’s decision was appropriate and legitimate.