SK "Difficult to Accept Fair Trade Commission Sanctions, Facts and Legal Principles Not Properly Reflected"

Published 22 Dec.2021 12:19(KST)

[Asia Economy Reporter Kim Hyewon] SK Inc. expressed regret over the Fair Trade Commission's imposition of a total fine of 1.6 billion KRW in the 'SK Siltron case,' calling it a "difficult-to-accept sanction decision."

On the 22nd, immediately after the FTC's announcement, SK Inc. issued a statement saying, "We regret that despite having faithfully explained the SK Siltron case, a sanction decision that is difficult to accept was made."

Earlier, the FTC concluded that SK Group Chairman Chey Tae-won’s acquisition of SK Siltron shares constituted an act of usurping business opportunities from the holding company SK Inc., and decided to impose fines of 800 million KRW each on SK Inc. and Chairman Chey, totaling 1.6 billion KRW.

This conclusion came three years after the FTC began its investigation in 2018, marking the first case where a controlling shareholder was sanctioned for exploiting a subsidiary’s business opportunities.

SK Inc. stated, "It is regrettable that opinions such as the fact that SK Inc., having secured sufficient shares to meet the special resolution requirements at the plenary meeting on the 15th, did not additionally acquire the remaining shares of SK Siltron, making it difficult to conclude it as 'providing business opportunities,' were not properly reflected in this decision process."

SK Inc. also pointed out, "Statements from witnesses and related evidence indicating that the public competitive bidding for the sale of the remaining shares was conducted fairly and transparently, with participation even from overseas companies, were not considered at all."

Furthermore, they added, "The FTC’s announcement does not properly reflect the facts and legal judgments confirmed during the plenary meeting deliberations and almost repeats the claims in the existing review report, which is not befitting of the status of the FTC plenary meeting."