The Korea Fair Trade Commission (KFTC) has launched an on-site investigation into allegations of unfair internal transactions within SM Group.
According to industry sources on the 11th, the KFTC’s Internal Transaction Monitoring Division dispatched investigators to SM Group’s headquarters on the 10th to conduct the probe. The investigation is expected to focus on whether specific affiliates received unfair support, with the probe likely to continue throughout the week.
SM Group is the 25th largest conglomerate in South Korea, primarily engaged in the shipping and construction sectors. The KFTC reportedly identified evidence suggesting that SM Group engaged in unfair internal transactions to benefit certain subsidiaries and is currently analyzing relevant data.
Unfair support involves providing financial or asset-related benefits to affiliates under preferential conditions, granting them excessive economic advantages, which could constitute a violation of the Fair Trade Act.
The investigation reportedly includes SM Line, Samwhan Corporation, SM Gyeongnam Enterprise, Samra, Korea Line Corporation, and SMAMC Investment Loan.
Notably, the KFTC is also investigating suspicions that certain affiliates were unfairly favored through internal transactions. A KFTC official stated, “If any legal violations are found, strict measures will be taken.”
Meanwhile, SM Group was also investigated by the KFTC in May last year over allegations that the owner family provided unfair support to their affiliated companies.
At the time, suspicions arose that SM Group had supported Taecho ENC, a company wholly owned by Woo Ji-young, the second daughter of SM Group Chairman Woo Oh-hyun, by supplying manpower and funds from other affiliates. The KFTC regarded this as unfair support for the owner’s family and proceeded with an investigation, while the police also launched a separate inquiry into the matter.
SM Group has not issued a statement regarding the current investigation. However, during last year’s probe, the company denied any wrongdoing, stating, “We comply with all relevant regulations in our business operations.”
출처 : 산경투데이 https://www.sankyungtoday.com
KFTC, Launches On-Site Probe into SM Group's Unfair Internal Transactions Allegations
The Korea Fair Trade Commission (KFTC) has launched an on-site investigation into allegations of unfair internal transactions within SM Group.According to indu
www.sankyungtoday.com
