Photo : YONHAP News
The Fair Trade Commission(FTC) has filed a complaint with the prosecution against HDC Hyundai Development Company chair Chung Mong-gyu on charges of violating the Fair Trade Act.
The FTC announced on Tuesday that Chung failed to report 20 companies owned by his relatives as HDC subsidiaries.
Under the Fair Trade Act, a company in which a blood relative within the fourth degree of kinship of the company chair or an in-law within the third degree of kinship holds more than 30 percent of shares is considered a subsidiary.
Chung was found to have failed to report such companies as subsidiaries even after an internal review in 2021 concluded that they need to be listed as affiliates.
HDC said the omission was a simple oversight and not a deliberate concealment.