The owner’s family is charged with’driving work’
GS “We will resolve the suspicion of the investigation process”
The Fair Trade Commission investigated the suspicion that GS Group provided unfair benefits to the owner’s family by driving them away. This is the first time since GS was separated from LG in 2005 and launched as a separate group.
According to the government and related industries on the 4th, the FTC’s corporate group bureau conducted a field investigation at GS Caltex headquarters in Yeoksam-dong, Seoul for three days from the 16th of last month. The FTC has secured internal data on the transaction relationship between GS Caltex and GS ITM, costs and unit prices, and it is reported that it has received statements from key executives.
GS ITM is a system integration (SI) company of GS Group, established in 2006. The owner’s family, including GS Energy Executive Vice President Heo Seo-hong and Heo Yun-hong, vice president of GS E&C, owned 100% of the stake. However, it is known that the owner’s family’s ownership ratio is slightly less than 20%, since 80% of the stake was sold to a private equity fund in 2018. The FTC believes that there is a possibility that a large number of internal transactions made when GS ITM’s internal proportion was 70% or more could be detrimental.
GS Group said, “It is true that the FTC is investigating,” and said, “As we are doing business with affiliates through transparent standards, various suspicions will be resolved during the investigation process.” In addition to the investigation on GS ITM, the FTC is reported to have requested data from the S&T headquarters, which is responsible for introducing crude oil from GS Caltex, and the lubricant business headquarters, and there is an observation that the investigation may expand.
Reporter Jihoon Lee [email protected]
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