 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, November 4 (local time) — The Seoul Central District Prosecutors’ Office announced that it has indicted Jung Do-won, Chairman of Sampyo Group, without detention on charges of violating the Fair Trade Act and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.
According to the prosecutors, Sampyo Industry, an affiliate of the group, allegedly provided unfair financial benefits to SP Nature, a raw materials supplier majority-owned by Jung Dae-hyun, the chairman’s eldest son and Senior Vice Chairman of Sampyo Group.
Between 2016 and 2019, Sampyo Industry is accused of purchasing raw materials from SP Nature at prices about 4% higher than market value, resulting in approximately ₩7.4 billion ($5.3 million) in unjust gains for SP Nature.
Prosecutors said the transactions significantly boosted SP Nature’s sales and operating profits, allowing Jung Dae-hyun to secure funds needed to consolidate his ownership stake in the group. The investigation also concluded that this unfair support helped SP Nature rise to a leading position in its market segment, forming the basis for a succession structure within the Sampyo conglomerate.
The indictment also includes Hong, former CEO of Sampyo Industry, who was allegedly involved in the scheme.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
