South Korea’s antitrust watchdog has launched a probe into the largest dealer of Mercedes-Benz Korea, one of the major foreign car importers in South Korea, an industry official said Monday.

The Fair Trade Commission carried out a written inquiry of Hansung Motor on whether the largest dealer and the second-largest shareholder of Mercedes-Benz Korea took unfair profits and disadvantaged other dealers of Mercedes-Benz Korea, the official said.

Hansung Motor’s competitors have complained that they have received unfair treatment from Mercedes-Benz Korea as Mercedes-Benz Korea’s policy on supply and sales of vehicles was made in a way that favored Hansung Motor.

A Fair Trade Commission official handling the investigation declined to comment, citing the probe is under way.

He said Mercedes-Benz Korea imports vehicles from the German carmaker and sells them to Hansung Motor and several other local dealers, which in turn compete against each other to sell the vehicles to South Korean consumers.

Hansung Motor did not immediately return a call seeking comment.

“The FTC has expanded its probe into the dealer as fair competition among dealers has a direct impact on consumers’ interests,” the industry official said.

The latest probe comes two months after the commission dispatched its officials to Mercedes-Benz Korea and three other foreign car importers to look into their alleged unfair practices.

The FTC official said the probe of the importers of foreign cars is still under way, though he declined to give any further details.

Sales of imported cars in South Korea jumped 24.6 percent on-year to a record high of 130,858 units last year as foreign brand vehicles have successfully made their presence felt in the country. (Yonhap News)