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False submission of ‘large company designation data’ to the FTC
23 relatives, 10 locations, including company property, allegedly missing
KCC “Practical level mistakes … I’ll call in the future”
As soon as he lifted the anchor of “second generation management,” KCC Chairman Chung Mong-jin was charged with prosecution. It was revealed that in the process of submitting the data for the designation of a large business group by the Fair Trade Commission, it was discovered that President Chung had omitted businesses owned by him and his relatives.
The Fair Trade Commission announced on the 8th that it initiated legal action against the prosecution for detecting the act of falsely presenting the data designated by President Chung, the same person (total number) from the KCC, a group of restricted investment companies. mutual (large corporations).
According to the FTC, Chairman Chung submitted data on the conglomerate designation in 2016 and 2017 to the FTC, omitting ‘Sylbaton Acoustics’, which has been operating under the name of the nominated shareholder and owns 100% of the stake since its establishment. Named data should be submitted based on the actual ownership relationship regardless of the share name. President Chung presented the relevant data only in 2018, after the fact of possession of a vehicle name was revealed in a tax audit by the National Tax Service in December 2017.
President Chung is also suspected of the omission of nine companies, including ‘Dongju’, which his relatives own 100%. The FTC explained that President Chung’s younger brother and others recommended unincorporated affiliates as KCC providers, and that around 2016, President Chung approved the related transaction as a KCC representative. In particular, KCC procurement department employees even managed the companies separately as “the status of specially related partners.” In addition, President Chung omitted 23 family members from the data presented. When submitting the designation data, up to 6 chonks for blood relatives and up to 4 chons for relatives.
The FTC considers President Chung’s omission to be intentional. Silvaton Acoustics was owned by President Chung from the time of its founding, and the missing relatives were close to President Chung, including his maternal uncle and brother-in-law. President Chung was also aware of the existence of his relatives and the conduct of his business. Above all, the FTC judges that President Chung has experience in submitting various designated materials since 2012, so he cannot know a number of facts.
The FTC considered the “possibility of recognition”, which is a requirement for the indictment of false filings, is remarkable and the “materiality” is also significant. “(Due to the omission of data), KCC could be excluded from the designation of mutually restricted corporate groups from September 2016 to April 2017.” “The same policy was not applied to stop the concentration of economic power.” He added: “This measure is also significant because it has reaffirmed that the same person (the total number) is in a position to actively review the content as an obligated person to submit the designated data.”
In this regard, KCC emphasized the position of “a simple, unintentional mistake.” A KCC official said: “The disappeared companies are companies that were independently operated by their relatives, and there is no party in which KCC has been involved in the establishment and operation,” and said: “As it is a simple mistake at the practice level, the prosecution will fully explain this part. “
Reporter Sejong Na Sang-hyun [email protected]
Reporter Myung Hee-jin, Seoul [email protected]
