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Chung Mong-kyu. (Photo=Yonhap News Agency) |
[Alpha Biz= Kim Jisun] HDC Group stated on April 6 that it “regrets” the prosecution’s decision to summarily indict its chairman, Chung Mong-kyu, on charges of violating South Korea’s fair trade laws.
In an official statement, HDC Group said that Chairman Chung does not hold any ownership stake in the companies controlled by his relatives and had no intent or motive to deliberately conceal information.
Earlier in the day, the Seoul Central District Prosecutors’ Office’s Fair Trade Investigation Division summarily indicted Chung, seeking a fine of KRW 150 million. A summary indictment is a procedure in which prosecutors request penalties such as fines through written review without proceeding to a full trial.
Chung is accused of omitting companies controlled by relatives from the list of affiliates when submitting disclosures as part of the designation process for large business groups between 2006, when he was first designated as the controlling shareholder, and 2021.
HDC Group argued that the companies in question were officially recognized by the Korea Fair Trade Commission last year as independently managed by relatives, and therefore should not be considered affiliates under HDC’s control.
The group added that there is room for legal interpretation regarding whether companies that are economically independent should be included in the scope of disclosure simply because they are owned by relatives, suggesting that such inclusion may not align with the legislative intent of the Fair Trade Act.
“Despite differences in legal interpretation, we take the prosecution’s decision seriously,” the company said. “We will adopt a humble approach to address shortcomings and strive to become a more transparent and trusted company.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
