The Fair Trade Commission has begun sanctions over allegations that SM Group supported affiliates through unfair internal transactions.
According to related industries on the 27th, the Fair Trade Commission recently sent to the parties an examination report containing its opinion to impose sanctions over alleged violations of the Monopoly Regulation and Fair Trade Act by SM Group affiliates, including SME AMC Investment Loan and HNE&C.
An examination report is a document that contains the facts of unlawful acts identified by the Fair Trade Commission and its opinion that sanctions should be imposed. In criminal proceedings, it corresponds to a prosecution's indictment.
SM Group is suspected of unfairly supporting, with funds from other affiliates and the like, the development project of a company owned by the second daughter of Chair Woo Oh-hyun. The Monopoly Regulation and Fair Trade Act prohibits large corporations from unfairly supporting with funds or personnel an affiliate owned by an Oner family.
The Fair Trade Commission is expected to convene a full commission meeting and the like to discuss the level of sanctions.