Unfair internal trading unearthed in 7 groups

Unfair internal transactions totaling 4 trillion won were uncovered in 7 groups, including Lotte and Kumho, resulting in fines of 17.3 billion won being levied on the offenders. In particular, Daelim group was found to have engaged in irregular inheritance practices by selling stocks below market prices to the chairman`s son.

The Fair Trade Commission discovered that 7 groups had implemented unfair internal transactions amounting to 3.9577 trillion won in a probe of 30 groups excluding the top 6. Offenders were punished with fines and were ordered to formally announce the details of the infringements in daily publications. Profits earned by the 7 groups through the unfair internal transactions aggregated to 49.9 billion won.

By group, Kumho had the highest at 1.1699 trillion won, followed by Dongkuk Steel (994.1 billion won), Daelim (657.3 billion won), Ssangyong (565.3 billion won), Cheil Jedang (216.8 billion won), Lotte (188.7 billion won) and Kolon (165.6 billion won). Daelim paid the largest fine at 4.822 billion won.

Unfair practices such as the cheap purchase of affiliate CPs, lending of low interest loans, indirect support through financial institutions, support of distressed affiliates and support of family companies were found to have occurred.