[Invest&Law] Verdict Expected Early Next Year in Administrative Lawsuit Over Alleged Unfair Support for Chairman's Child at Daebang Construction

Court to Conclude Oral Arguments on December 18

The administrative lawsuit concerning the alleged unfair support of a subsidiary company involving Koo Gyo-woon, Chairman of Daebang Construction, is expected to conclude oral arguments within this year, with a verdict anticipated in early 2026. On October 30, the Seoul High Court's Administrative Division 3 (Presiding Judge Yoon Kang-yeol) announced during the second hearing of the lawsuit filed by Daebang Construction against the Korea Fair Trade Commission (KFTC) to revoke corrective orders that the proceedings would be finalized on December 18.

In the first hearing, the court noted that among the six public housing sites in question, three were resold in 2015 and the remaining three between 2019 and 2020, pointing out a four-year time gap. The court asked the KFTC to explain why these transactions were regarded as a single act of unfair support despite the time difference.

The KFTC responded that the resale was delayed due to the limited construction capacity of Daebang Industrial Development, the company receiving the support. Daebang Construction countered that there was no intention of unfair support. Daebang Industrial Development is a company in which Chairman Koo's daughter, Koo Sujin, holds a 50% stake.

In February 2025, the KFTC imposed a fine of 20.56 billion won on Daebang Construction, Daebang Industrial Development, and five subsidiaries under Daebang Industrial Development, and issued a corrective order. The KFTC stated that Daebang Construction resold six public housing sites worth 206.9 billion won to Daebang Industrial Development and its five subsidiaries between 2014 and 2020, and that unfair support occurred during this process. The KFTC also claimed that Daebang Construction transferred prime sites with development potential, allowing Daebang Industrial Development to take all the development and construction profits from the resold sites.

Reporter Lee Sangwoo, Legal Times

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