A promoter displays a Samsung Note android phone during its launch in Jakarta Nov 8, 2011. Samsung is to inspect 250 Chinese companies which make products for the South Korean firm to ensure no labor laws are broken. [Photo/Agencies]

Samsung Electronics Co is to inspect 250 Chinese companies which make products for the South Korean firm to ensure no labor laws are broken. Monday's announcement follows accusation that one of its suppliers was using child labor.

Samsung said its audit of an HEG Electronics facility in Huizhou in southern China found no under-age workers. New York-based China Labor Watch said last month that seven children under 16 were working in the factory that makes phones and DVD players for Samsung.

However, Samsung said the audit revealed instances of inadequate management and practices such as illegal overtime, improper safety measures and a system of fines for tardiness or absences.

"Samsung has demanded that HEG immediately improve its working conditions. If HEG fails to meet Samsung's zero tolerance policy on child labor, the contract will be immediately severed," Samsung said.

It said it would be inspecting 105 companies that produce goods solely for Samsung by the end of September, and review, by the end of the year, another 144 suppliers that make products for it and other firms.