The Fair Trade Commission HQ building in Sejong (Image courtesy of Yonhap)
SEOUL, Dec. 31 (Korea Bizwire) — The Fair Trade Commission (FTC) said Wednesday it has imposed fines totaling 93.5 billion won (US$64.8 million) on three construction companies and CJ Group for illegal inter-subsidiary transactions.
The FTC said it fined Daebang Construction Co., JungHeung Construction Co., Woomi Co. and CJ Group, and referred them to the prosecution following a government investigation into unfair insider trading related to public land development projects.
The commission fined Daebang Construction for providing improper support to affiliated companies owned by the chairman’s family by transferring the ownership of public housing sites, expected to yield massive development returns.
JungHeung was sanctioned for allegedly providing free guarantees worth trillions of won to a company owned by a family member of the chairman.
Food-to-entertainment conglomerate CJ Group was accused of illegally injecting funds into a troubled affiliate through derivatives.
Woomi, a midsized real estate developer, was slapped with fines for the alleged funneling of large-scale construction projects to its affiliates, including a company owned by the chairman’s family member.
(Yonhap)
