Prosecutors Indict SPC Chairman Heo Young-in and Others for Unfair Support and Breach of Fiduciary Duty in Affiliates

SPC Group Chairman Heo Young-in is making a public apology at the SPC headquarters in Seocho-gu, Seoul, regarding the recent employee death accident that occurred at the affiliate SPL. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyung-min] The prosecution investigating allegations of unfair support and breach of trust involving SPC Group's affiliates indicted SPC Group Chairman Huh Young-in and others on the 16th.

The Seoul Central District Prosecutors' Office Fair Trade Investigation Division (Chief Prosecutor Lee Jung-seop) indicted Chairman Huh without detention on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes on the 16th. Former SPC Group President Cho Sang-ho and Paris Croissant CEO Hwang Jae-bok were also indicted.

They are accused of causing losses of 5.81 billion KRW to Shani and 12.16 billion KRW to Paris Croissant by transferring Milda One shares to Samlip at a low price in December 2012 to evade gift tax imposed on the chairman's family. In this process, Samlip gained profits worth approximately 17.97 billion KRW.

The Fair Trade Commission imposed a fine of 64.7 billion KRW in 2020 and reported the executives to the prosecution. Minority shareholders of Shani also filed a complaint with the prosecution in October 2020 against Chairman Huh and other SPC family members for breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, claiming losses due to free provision of trademark rights and low-price transfer of sales networks.

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