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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Minyoung] The Korea Fair Trade Commission (KFTC) issued a warning to ShinYoung Group Chairman Chung Choon-bo for omitting certain companies related to his relatives and executives from the group’s affiliate status report, which was submitted for the designation of large business groups subject to restrictions on mutual investment.
On the 16th, the KFTC announced that it recently decided during its first subcommittee meeting to issue a warning to Chairman Chung for failing to include companies such as DK Investment, Han & Jung Equity Partners in the list of ShinYoung Group affiliates.
Chairman Chung had submitted materials for the designation of large business groups subject to mutual investment restrictions in 2022 and last year, but did not include five companies where his relatives and executives were the largest shareholders.
Specifically, DK Investment and Han & Jung Equity Partners were companies where Mr. Kang and Mr. Chung, Chairman Chung’s nephews, each owned more than 30% of the shares, making them the largest shareholders. These two companies applied for independent management status from their relatives in February last year and were excluded from ShinYoung Group's affiliates on March 21, but they had been considered affiliates until that time.
Polus and Decon were companies where Chairman Chung’s daughter-in-law, Ms. Yoon, was the largest shareholder. Ms. Yoon sold part of her shares in August last year, losing her status as the largest shareholder, but until then, both Polus and Decon were considered part of ShinYoung Group’s affiliates.
Additionally, Mr. Lee, an executive at ShinYoung Group, owned 50% of Bohwa Invest until he resigned as CEO of Brighton Asset Management, a ShinYoung Group affiliate, on January 29 of last year.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
