Fair Trade Commission Sanctions Underway? Hoban Construction "Subsidiary Report Omission Not Intentional... Will Provide Explanation"

[Asia Economy Reporter Kim Min-young] Hoban Construction has stated that the allegations of disguised affiliates from the Fair Trade Commission are "not intentional."

On the 12th, Hoban Construction said in a press clarification, "The Hoban Construction corporate group is currently under investigation by the Fair Trade Commission for violation of the obligation to submit designated materials, due to a delayed report caused by failing to identify companies whose stocks are held by relatives within the sixth degree of kinship and within the fourth degree of affinity of the same person."

Earlier, the Fair Trade Commission sent a review report (equivalent to a prosecutor's indictment) in October last year, expressing its intention to sanction Hoban Construction for omissions in submitting designated materials for the disclosure-target corporate group. The Fair Trade Commission receives designated materials containing affiliate and shareholder status from the heads of major groups (the same person) annually to designate large business groups subject to disclosure obligations with total assets exceeding 5 trillion won. Hoban Construction omitted materials related to Segi Trading, prompting the investigation. Segi Trading is a listed company whose largest shareholder is the son-in-law of Chairman Kim Sang-yeol and owns the 'Daehan Theater' located in Jung-gu, Seoul.

Hoban Construction stated it will clarify in the subcommittee that the omission of materials was not intentional. Hoban Construction said, "We are sincerely cooperating with the Fair Trade Commission's investigation" and "We plan to specifically clarify in the upcoming subcommittee that the omission of materials was not deliberate."

Regarding the Fair Trade Commission investigator's opinion to file charges against Chairman Kim, the head (the same person), Hoban Construction explained, "Since the Fair Trade Commission's official decision through the subcommittee has not been made, the indictment of Chairman Kim Sang-yeol is not a final decision."

The Fair Trade Commission plans to hold a subcommittee soon to hear Hoban Construction's position and then finalize the level of sanctions. Hoban Construction said, "We understand that the Fair Trade Commission will hold a subcommittee within one to two months to listen to the opinion letter submitted by our company and the opinions of the review committee members and make a final decision on the matter."

This content was produced with the assistance of AI translation services.