Prosecutors Conduct Search and Seizure at SPC Group for 'Unfair Support to Affiliates'

The Taegeukgi and the Prosecutor's Office flag hanging at the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution has launched a search and seizure operation against SPC Group, which is suspected of 'preferential treatment in business transactions' and 'unfair succession.'

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jung-seop) sent prosecutors and investigators to SPC Group's headquarters and affiliated company offices on the morning of the 8th to secure materials related to allegations of breach of trust by SPC Group's management. The office of Chairman Heo Young-in was also included in the search and seizure targets.

The prosecution is reportedly securing evidence to investigate suspicions that the group’s management committed breach of trust by transferring affiliated company stocks at low prices for the benefit of Chairman Heo and other members of the controlling family.

The prosecution is investigating allegations that SPC affiliates unfairly supported SPC Samlip from 2011 to 2018, funneling 41.4 billion KRW in profits. In connection with this, Chairman Heo Young-in and other members of the controlling family have also been placed under investigation for breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. Previously, the Fair Trade Commission imposed corrective orders and fines totaling 64.7 billion KRW on SPC Group and filed complaints with the prosecution against Chairman Heo, former Group General Manager Cho Sang-ho, Group General Manager Hwang Jae-bok, and affiliated corporate entities.

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