'Cha Myung-hoesa Nulak' Jung Mong-jin KCC Chairman Fined 70 Million Won in First Trial

Jung Mong-jin, Chairman of KCC

[Asia Economy Reporter Kim Daehyun] Jeong Mongjin, chairman of KCC, who was prosecuted for omitting information about nominee companies and affiliated family companies in reports to the Fair Trade Commission, was sentenced to a fine of 70 million won in the first trial.

On the 11th at 2 p.m., Judge Park Heegeun of Criminal Division 18 at the Seoul Central District Court delivered this sentence to Chairman Jeong, who was indicted for violating the Fair Trade Act.

Judge Park stated, "Considering the defendant's court testimony and the prosecution's statements, a guilty verdict is justified. Given the nature of the offense, the legislative intent of the Fair Trade Act, and the impact of the related acts on the domestic economy, the crime is not minor," but added, "It appears that the offense was committed with indirect intent rather than definite intent at the time."

Judge Park also took into account that the materials related to the restriction on cross-shareholding submitted to the Fair Trade Commission were corrected by Chairman Jeong's side due to errors, and considered sentencing factors such as the absence of prior criminal records. Although Chairman Jeong denied the charges at the first trial, claiming "there was no intent," he eventually admitted to the offense during the trial process.

Previously, Chairman Jeong was accused and prosecuted for omitting information about nine suppliers wholly owned by nominee companies and relatives when submitting materials for designation as a large business group in 2016-2017. Due to the omission, KCC was excluded from the large business groups subject to cross-shareholding restrictions.

The Fair Trade Commission reported to the prosecution that Chairman Jeong was aware of the submission of false materials, and the prosecution requested a summary order for a fine of 100 million won in August last year. A summary order means that the prosecution requests the court to impose a fine or penalty without a formal trial, based only on written review, and the court issues a sentence without a full trial.

However, the court judged that a formal trial was necessary and, on its own authority, referred Chairman Jeong to trial.

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