Prosecutors Summon Hwang Jaebok, SPC President, Over 'Unfair Support to Affiliates'

Hwang Jae-bok, President and CEO of SPC Group, announced a plan to strengthen safety management to prevent recurrence related to the death accident at the bakery factory of SPL, an SPC affiliate in Pyeongtaek, at the SPC headquarters in Yangjae-dong, Seocho-gu, Seoul, on the morning of the 21st.
[Photo by Yonhap News]

[Asia Economy Reporter Kim Daehyun] The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jeongseop) summoned Hwang Jaebok, the General President of SPC Group, on the 27th as a suspect in connection with allegations of 'unfair support to affiliates.'

Hwang is suspected of violating the Fair Trade Act by being involved in SPC Group affiliates such as Paris Croissant, Shani, SPL, and BR Korea funneling work to SPC Samlip from 2011 to 2018, resulting in a total profit of 41.4 billion KRW. The prosecution suspects that this was done to maintain the controlling family's dominance and facilitate succession of management rights, by increasing the value of SPC Samlip shares held by the second generation through channeling profits.

In July 2020, the Fair Trade Commission confirmed these facts and imposed corrective orders along with a fine of 64.7 billion KRW on the affiliates. Additionally, Chairman Heo Youngin, former Group General President Cho Sangho, Hwang, and the affiliate corporations were reported to the prosecution. Minority shareholders of Shani filed a complaint against Chairman Heo and other members of the controlling family for breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, claiming damages due to free provision of trademark rights and low-price transfer of sales networks.

The prosecution is investigating with the goal of resolving the case within the year. Chairman Heo and former President Cho are also expected to be summoned for questioning soon.

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