Choi Tae-won Suspected of 'SK Siltron Private Profit Abuse'... Police Conclude 'No Prosecution'

Fair Trade Commission with Exclusive Right to Prosecute
Reportedly Has No Intention to Exercise Prosecution Rights

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The police have closed the case against SK Group Chairman Chey Tae-won, who was suspected of hijacking SK's business opportunities by acquiring shares in SK Siltron, with a "no prosecution" decision.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on the 27th that it had decided not to prosecute Chairman Chey, who was accused of violating the Commercial Act and the Fair Trade Act (prohibition of misuse of business opportunities), on the 26th of last month.

This decision by the police is reportedly due to the Korea Fair Trade Commission (KFTC) indicating that it had no intention to exercise its right to file a complaint. Cases related to the Fair Trade Act require a complaint from the KFTC, which holds exclusive authority to file charges, for prosecution to proceed.

Earlier, in December last year, the KFTC imposed a total fine of 1.6 billion won on SK and Chairman Chey, finding that Chairman Chey gained unfair profits worth about 200 billion won during the acquisition of a 29.4% stake in SK Siltron in 2017.

At that time, the KFTC stated it would not file a complaint, considering the lack of evidence proving that Chairman Chey directly instructed SK. It was also reported that the KFTC took into account that there had been no precedent of judging the acquisition of some shares by a corporate head during mergers and acquisitions (M&A) as providing business opportunities under the Fair Trade Act.

In response, the civic group Committee for the Protection of Ordinary People's Livelihoods filed a complaint with the police in January, accusing Chairman Chey of violating the Commercial Act and the Fair Trade Act, and the complainant was investigated in March.

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