Prosecutors Summon Former SPC President Jo Sang-ho Over 'Unfair Support to Affiliates'

Entrance of the Seoul Seocho-dong Central District Prosecutors' Office Photo by Yonhap News

[Asia Economy Reporter Kim Hyung-min] On the 17th, the prosecution summoned and is investigating Cho Sang-ho, former SPC Group Chief Officer, regarding allegations of 'unfair support and breach of trust' within SPC Group's affiliates.

The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Lee Jung-seop) is currently questioning Cho as a suspect.

The prosecution suspects that SPC Group systematically funneled profits to Samlip to increase the stock value of SPC Samlip held by the second generation, aiming to maintain the controlling power of the family over affiliates and to succeed management rights.

Earlier, the Fair Trade Commission, which investigated the case, found that under the involvement of the family head, SPC provided Samlip with benefits worth approximately 41.4 billion KRW through unfair support within the group from April 2011 to April 2019. Accordingly, corrective orders and fines totaling 64.7 billion KRW were imposed on the affiliates, and former Chief Officer Cho, Group Chairman Huh Young-in, and Paris Croissant CEO Hwang Jae-bok were reported to the prosecution.

Last month, the prosecution summoned CEO Hwang for questioning, and on the 8th, conducted a search and seizure at SPC Group headquarters and Chairman Huh's office.

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