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Hoban Construction |
[Alpha Biz= Kim Jisun] The court has ruled to cancel part of the 60.8 billion KRW fine imposed by the Fair Trade Commission (FTC) on Hoban Construction. Despite this ruling, Hoban Construction plans to appeal to the Supreme Court, asserting that the fine is still unjust.
The Seoul High Court's Administrative Division 7 ruled on Thursday in favor of Hoban Construction's partial lawsuit against the FTC's corrective order and fine payment order.
The court decided to cancel the fine for two of the four illegal acts identified by the FTC, including the resale of public land (36.06 billion KRW) and the free loaning of bid application fees (461 million KRW).
However, the court upheld the FTC's decision to impose a fine for the free payment guarantee provided for project financing (PF) loans worth 2.6393 trillion KRW for 40 public land development projects by companies associated with the second generation of the company's leadership, and for the transfer of 4.936 trillion KRW worth of construction projects. As a result, approximately 24.34 billion KRW of the fine, out of the original 60.8 billion KRW, was canceled.
Regarding this ruling, Hoban Construction maintains that the two remaining fines are also unjust. The company argues that it is an industry practice for the project developer to provide a payment guarantee for the construction costs of the builder, and that it was unfair not to recognize this practice.
Additionally, Hoban Construction asserts that the transfer of construction projects does not result in any tangible or intangible benefits being transferred to related parties, and that the decision not to accept this was incorrect.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
