SMR Hyosang automotive settles KRW 360 million dispute with South Korean subcontractor

SMR Hyosang Automotive Ltd., a subsidiary of Samvardhana Motherson International Limited, will pay KRW 360 million to a South Korean subcontractor by April 27, 2026. This payment follows a mediation agreement reached on April 6, 2026, to resolve outstanding dues from subcontracting transactions. The settlement, which excludes Value Added Tax, amounts to approximately INR 2,21,79,600 based on an exchange rate of 1 KRW = INR 0.06161 as of April 6, 2026.

Key Highlights

• SMR Hyosang Automotive to pay KRW 360 million to subcontractor by April 27, 2026.
• Settlement reached through mediation with Korea Fair Trade Mediation Agency
• No material impact on financial position of SMR Hyosang or parent company
• Disclosure made to National Stock Exchange and BSE under SEBI regulations

Settlement Details and Mediation Process

The Subcontracting Dispute Mediation Committee (SDMC) of the Korea Fair Trade Mediation Agency facilitated the agreement. Both parties agreed to the terms through mediation, avoiding any legal dispute or adverse order. The payment deadline is set for April 27, 2026. The mediation process ensured that no violation or contravention was attributed to either SMR Hyosang Automotive or the subcontractor.

Samvardhana Motherson International Limited disclosed the settlement to the National Stock Exchange and BSE on April 7, 2026. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company clarified that the settlement would not materially impact the financial position or operations of SMR Hyosang Automotive or its parent entity.

Context and Financial Impact

The dispute arose from dues related to subcontracting transactions. The mediation process provided a resolution without legal proceedings. The settlement amount of KRW 360,000,000 was agreed upon after discussions facilitated by the SDMC. The company emphasized that the resolution resulted from a successful mediation, not from any regulatory or judicial order.

Samvardhana Motherson International Limited stated that the payment will not affect its overall financial health. Both parties accepted the terms, and the matter is considered closed following the mediation agreement. The company continues to comply with all regulatory disclosure requirements.

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Conclusion

This settlement marks a positive turn for SMR Hyosang Automotive, reinforcing its commitment to ethical partnerships and transparent financial practices. By resolving the KRW 360 million dispute, the company not only mitigates operational risks but also strengthens its position within the competitive South Korean automotive supply chain, paving the way for more stable future collaborations.