Chung Mong-kyu, chairman of HDC Group, has been fined 150 million won for allegedly omitting 20 affiliated companies from documents submitted to the Fair Trade Commission (FTC).
According to legal sources, the Seoul Central District Court's Criminal Division 11, presided over by Judge Kim Jae-hak, issued a summary order on May 15 for the violation of the Fair Trade Act.
A summary order is a procedure that imposes fines or penalties for relatively minor offenses without a formal trial, based solely on written proceedings. The individual can request a formal trial within seven days of receiving the order. Chung has not yet received the summary order.
Chung is accused of omitting a total of 20 companies from HDC Group's affiliated company status while submitting documents for designation as a business group with cross-shareholding restrictions from 2021 to last year.
According to the FTC, the omitted companies include 12 firms controlled by SJG Holdings, led by Chung's uncle Park Se-jong, and 8 firms controlled by Intrans Shipping, owned by his sister Jeong Yu-kyung and her husband Kim Jong-yeop.
The number of omitted companies per year was 17 in 2021, 19 in 2022, 19 in 2023, and 18 in 2024. The FTC determined that false submissions occurred for as long as 19 years, from 2006, when Chung was designated as the head of HDC, until last year. However, due to the five-year statute of limitations, only actions taken after 2021 were subject to penalties.
The FTC reported that Chung, who has served as the CEO of HDC, a holding company, for an extended period, was in a position to be fully aware of the scope of affiliated companies and had ongoing interactions with the family-owned firms, indicating intent to conceal. Consequently, the FTC filed a complaint with the prosecution in March.
Following an investigation, prosecutors issued a summary indictment against Chung on April 6, imposing the 150 million won fine.
HDC Group previously stated, "Chairman Chung does not hold any shares in these companies and had no improper intent or motive to conceal them."
* This article has been translated by AI.
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