Kyokuto Kaihatsu Kogyo to contest JFTC surcharge order

Kyokuto Kaihatsu Kogyo Co. and its subsidiary, Japan Trex Corporation, announced a lawsuit seeking revocation of a surcharge payment order issued by the Japan Fair Trade Commission (JFTC). This action follows the JFTC's exclusion and surcharge payment order issued on September 24, 2025, regarding the sale of "superstructures." The companies intend to seek a reduction in the surcharge amount, stating discrepancies in the JFTC's factual findings and legal interpretation.

The total surcharge amount imposed is JPY 5,925,530,000, with Kyokuto Kaihatsu Kogyo responsible for JPY 2,600,189,000 and Japan Trex Corporation for JPY 3,323,640,000. These amounts, due by April 27, 2026, reflect a 30% reduction under the surcharge reduction system.

Despite legal action, Kyokuto Kaihatsu Kogyo Group stated its commitment to strengthening compliance and internal management systems to prevent recurrence and restore trust. The company deeply regrets the situation and apologizes for the inconvenience caused to stakeholders.