1. Market Conditions
The respondent (Mobile Communications Department of Samsung Electronics) outsourced
most of the manufacturing of components for mobile phones to subcontractors, such as
battery chargers, battery, antennas, printed-circuit boards, covered wires, cable speakers and
mikes, etc.
In addition, when purchasing components, the respondent usually purchased from multiple
subcontractors by dividing its orders at a certain ratio among subcontractors.
2. Fact Findings1
1) Delayed delivery of written document of terms
From January 1 to December 31, 2004, the respondent2
had outsourced the manufacturing
of a new mold for mobile phone components to 6 subcontractors, including Seh Shin, without providing any written document describing subcontract payment and other details before
subcontractors started to do the work ordered.