​NEWS

IRISO Receives Corrective Recommendation from Japan Fair Trade Commission

Today, IRISO ELECTRONICS. CO., LTD. (Head office: Yokohama City, Kanagawa Prefecture; President＆CEO: Hitoshi Suzuki) received a corrective recommendation (hereinafter "the Corrective Recommendation") from the Japan Fair Trade Commission based on the Act against Delay in Payment of Subcontract Proceeds, etc., before its amendment (hereinafter the "Subcontracting Act").
We deeply apologize to our shareholders and investors, as well as to our business partners and all other related parties, for any inconvenience and concern this may cause.

1. Details of Corrective Recommendation

The company entrusts the manufacturing of some components of our products to our business partners subject to the Subcontracting Act (hereinafter the "Entrusted Business Operators") and lend molds and other equipment owned by the company or our customers to some of the Entrusted Business Operators for use in the manufacturing of the components.

The Corrective Recommendation is issued based on the finding that the company required the Entrusted Business Operators to store unused molds and other materials without payment for a long time, even though the company had not placed orders for some of the components manufactured using such molds and materials, which violates Article 4, Paragraph 2, Item 3 of the Subcontracting Act (prohibition of requesting the provision of unfair economic benefits).
Please note that the subcontracting storage practices after June 2024 at the latest are subject to the Corrective Recommendation, involving 34 Entrusted Business Operators, as well as 821 molds and other materials.

2. Our Response to Corrective Recommendation

We take the Corrective Recommendation very seriously and will conduct board meetings to pass a valid resolution based on it. We will also take necessary actions to improve our internal control systems, such as reviewing our internal training on the Act on the Proper Operation of Small and Medium-Sized Enterprises in Commissioned Transactions (amended in January 2026) and strengthening our checking system, as well as to ensure that all executive officers and employees are fully aware of their importance. At the same time, we will be committed to compliance improvement and recurrence prevention.

Besides, we will make a sincere apology to the Entrusted Business Operators and discuss with them to correctly pay the subcontracting storage fees. We will promptly address the issue while seeking confirmation on the payment completion from the Japan Fair Trade Commission.

Contact for Inquiries

IRISO ELECTRONICS CO., LTD.  Corporate Communication Department
2-13-8 Shin-Yokohama, Kohoku-ku, Yokohama-shi, Kanagawa 222-0033, Japan