This article was published on March 17, 2025, at 4:16 p.m. on the ChosunBiz RM Report site.
The Fair Trade Commission has confirmed it has launched an on-site investigation into Sinokor Merchant Marine. Sinokor Merchant Marine is a corporation designated as a conglomerate restricted in mutual investment, ranking 38th in the business sector. Such conglomerates are prohibited from mutual investment and debt guarantees between their affiliates.
According to the industry on the 17th, the Fair Trade Commission has conducted on-site investigations at the headquarters of Sinokor Merchant Marine and some of its affiliates. The Fair Trade Commission is reportedly looking into whether Sinokor Merchant Marine provided funds to a company operated by the owner’s second son through internal transactions among its affiliates.
Sinokor Merchant Marine operates vessels through its affiliates, including Sinokor Maritime, Sinokor Petrochemical, and Heung-A Shipping.
According to the consolidated audit report filed by Sinokor Merchant Marine last year, the company had lent a total of 815.3 billion won to its affiliates as of the end of last year. This includes a loan of 325.3 billion won to Sinokor Petrochemical, 266.5 billion won to Sinokor Maritime, and 171.9 billion won to Sinokor Tanker. All of these companies are 100% owned by Jeong Gahyun, the son of Jeong Tae-soon, chairman of Sinokor Merchant Marine.
The affiliates of Sinokor Merchant Marine have repeatedly engaged in large-scale monetary lending and borrowing with each other. Last year, Sinokor Tanker reportedly lent 464.4 billion won to Sinokor Maritime and 361.6 billion won to Heung-A Line.
Inside and outside the Fair Trade Commission, there are reports that there may be an investigation into the process by which Sinokor Merchant Marine used its affiliates to order Very Large Crude Carriers (VLCCs). There is also a possibility of an investigation into work distribution through internal transactions.
A Fair Trade Commission official stated, "It is true that we have initiated an on-site investigation," adding, "We will take strict action in accordance with relevant laws if any violations are confirmed."