An affiliate of KPX Group was imposed a fine of 1.6 billion won for unfairly supporting the company of Chairman Yang Gyu-mo.
The Fair Trade Commission announced on the 10th that it imposed a penalty of 1.36 billion won to Jinyang Industrial, a subsidiary of KPX Group, and 275 million won to CK Enterprise, respectively, and issued a corrective order for unfair support of the company. .
KPX is a mid-sized group of companies in the chemical field, with an international group forcibly disbanded in the 1980s.
Jinyang Industries purchased materials necessary for sponge manufacturing and exported them to a local subsidiary in Vietnam with a margin, and the local subsidiary produced products and supplied them to domestic shoe manufacturers such as Changsin and Taekwang Industries.
As a result of the FTC survey, since 2012, Jinyang Industrial has handed over part of the export goodwill of PPG, a sponge raw material and subsidiary material, to CK Enterprise, where Yang (6% owned) and his eldest son, Yang Jun-young, vice chairman of KPX Group (88%) are shareholders.
From August 2015, all export goodwill (valued at 3.67 billion won) was transferred.
CK Enterprise, which was originally a real estate rental business, received export goodwill and posted sales of 42.3 billion won in product export business from 2012 to 2018.
The FTC said, “CK Enterprise newly entered the sponge raw material export market without any effort or basis, creating a position as a monopoly business. This company uses the profits to secure a stake in KPX Holdings, and is the foundation for the succession of the management rights of the eldest son of the same man. It is also prepared.”
Vice Chairman Yang’s stake in KPX Holdings was only around 5% in 2011, but it rose to around 20% last year (Vice Chairman Joonyoung Yang 10.4%, CK Enterprise 11.24%).
This is the reinforcement of the governance structure of Vice Chairman Yang Gyu-mo → CK Enterprise → KPX Holdings → KPX affiliates.
/yunhap news
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution