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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s antitrust regulator has filed a criminal complaint against Chung Mong-gyu, accusing him of failing to properly report companies linked to family members in required filings related to large business groups.
According to an exclusive report by Kookmin Ilbo on March 8, the Korea Fair Trade Commission recently referred Chung to prosecutors on charges of violating the Monopoly Regulation and Fair Trade Act by allegedly omitting around 20 companies connected to relatives when submitting designation data for cross-shareholding-restricted business groups between 2021 and 2024.
This marks the third time since the leadership of Joo Byung-ki began in September last year that the regulator has referred a major conglomerate head to prosecutors for allegedly submitting false or incomplete designation data.
However, some of the alleged offenses are approaching the statute of limitations, prompting criticism from legal experts that the commission has once again filed charges too late. In Chung’s case, the statute of limitations for the 2021 filing expires early next month, as such violations carry a five-year limitation period starting from the date the data was submitted.
Unlike general criminal cases, the statute of limitations for violations of the Fair Trade Act does not pause during investigations by the regulator. The Fair Trade Commission is understood to have launched its investigation in September 2024.
Similar timing issues have emerged in other recent cases involving conglomerate leaders.
The regulator announced on Feb. 8 that it had referred Kim Jun-ki to prosecutors for allegedly failing to report 15 companies connected to the Donggok Social Welfare Foundation and related entities in filings between 2021 and 2025. The statute of limitations for the 2021 filing in that case also expires early next month. The investigation began in August 2023, and the referral was made in late January.
In another case announced on Feb. 23, the commission accused Sung Ki-hak of failing to report 82 companies owned by himself, his relatives and executives between 2021 and 2023. The statute of limitations for the 2021 filing in that case expires at the end of this month.
Youngone Group operates subsidiaries such as Youngone Corporation and Youngone Outdoor, which produce and distribute products for brands including The North Face and Patagonia.
The antitrust regulator has faced criticism in the past for delayed criminal referrals. In the humidifier disinfectant case, prosecutors dismissed charges against companies including SK Chemicals and Aekyung Industrial after the statute of limitations had effectively expired. A similar controversy arose when the commission referred Lee Hae-jin in an affiliate omission case just one month before the limitation period expired.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
