Prosecutors on the 4th indicted Sampyo Group Chairman Jeong Do-won without detention. The case involves allegations that Chairman Jeong unfairly supported his eldest son's company to hand over management control stably.
On this day, the Seoul Central District Prosecutors' Office Fair Trade Investigation Division (headed by Chief Prosecutor Na Hee-seok) said it indicted Chairman Jeong and former Sampyo Industry CEO Hong Sung-won without detention on charges of violating the Monopoly Regulation and Fair Trade Act and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.
Sampyo Industry is a core affiliate of Sampyo Group that manufactures and sells aggregates, ready-mixed concrete, and concrete products. Chairman Jeong Do-won holds 30.33% equity, and SP Nature holds 18.23%. SP Nature is a private company in which Sampyo Group Vice Chairman Jeong Dae-hyun, Chairman Jeong's son, owns 71.95% equity. The company is in charge of supplying powder used in manufacturing ready-mixed concrete.
Prosecutors determined that from Jan. 2016 to Dec. 2019, Sampyo Industry unfairly supported Vice Chairman Jeong Dae-hyun by purchasing ready-mixed concrete raw materials from SP Nature at prices 4% higher than market rates. Prosecutors said that during this period, Sampyo Industry suffered about 7.4 billion won in losses.
The investigation began when the Fair Trade Commission filed a complaint with prosecutors against the Sampyo Industry corporation for alleged violations of the Fair Trade Act. Prosecutors expanded the probe to the Sampyo Group owner family. In Dec. last year, prosecutors indicted Sampyo Industry and former CEO Hong Sung-won on charges of violating the Fair Trade Act. With the statute of limitations under the Fair Trade Act approaching, they first sent the corporation and the then-CEO to trial.