August 5, 2014 / 6:55 AM / 3 years ago

Samsung Elec says to cut business with Shinyang's China unit by 30 pct

SEOUL, Aug 5 (Reuters) - Samsung Electronics Co Ltd said on Tuesday that it will cut business volume with a Chinese subsidiary of Shinyang Engineering Co Ltd by 30 percent from a year earlier after discovering the use of child labour.

Samsung said in a statement that while Dongguan Shinyang Electronics, Shinyang Engineering’s wholly owned subsidiary, did not directly hire or engage in hiring of illegal labour, Chinese authorities found that children were hired to work for the subsidiary through a labour dispatch agency.

“Given the Chinese authorities’ finding that Dongguan Shinyang itself did not hire child labour, Samsung will lift the suspension of business with Dongguan Shinyang,” Samsung Electronics said.

“Nevertheless, Samsung has decided to still take measures against Dongguan Shinyang to hold the supplier responsible for failing to monitor its subcontractors, in accordance with Samsung’s zero-tolerance policy on child labour.” (Reporting by Se Young Lee; Editing by Ryan Woo)

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