48.7 percent of carmakers even chose the construction company that their dealerships had to use. (image: Korea Bizwire/Kobiz Media)
SEOUL, Nov. 28 (Korea Bizwire) — Automakers such as Hyundai Motor and Kia Motors are engaged in excessive management interventions, including their involvement in the personnel management of their sales agents.
On the other hand, the pharmaceutical industry has seen an increase in the practice of rebates, in which sellers return a share of their payments to the pharmacist.
According to the results of a month-long survey from September by the Fair Trade Commission (FTC), 48.7 percent of carmakers even chose the construction company that their dealerships had to use, and required dealers to follow specific interior design guidelines.
In particular, there were many cases in which suppliers interfered in management, such as personnel or hiring employees at dealerships, as sales differed greatly depending on the business capabilities of individual dealerships or employees.
They also interfered with the personnel issues of dealership employees with 28.1 percent of staff members said to have been affected by interference on the part of the company.
Furthermore, many dealerships saw their sales goals set by headquarters, and when the goals were not met, 31.7 percent experienced disadvantages.
Meanwhile, the pharmaceutical industry’s chronic rebate practices remain a pressing issue. Some 16.9 percent of dealers said rebates are still a problem.
Rebates refer to an illegal act in which a pharmaceutical company gets paid through a third party, either directly or through an agency, on condition that a large hospital enters a contract to be supplied with drugs by a certain pharmaceutical company.
However, the FTC suggested that the provision of rebates is mainly centered on suppliers, which are large pharmaceutical companies, and that there are not many cases where dealers are offering rebates.
FTC officials said, “The pharmaceutical industry hoped to improve on the sudden suspension of supply by its headquarters.”
Ashley Song (ashley@koreabizwire.com)
