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| 함영준 오뚜기 회장. (사진=오뚜기) |
[Alpha Biz= Cha Hye-young] Seoul, October 2 – The National Tax Service (NTS) has launched an unscheduled tax investigation into Ottogi Chairman Ham Young-joon and his family, amid allegations of embezzlement and unfair internal transactions.
According to a media report on the 1st, the Investigation Bureau 3 of the Seoul Regional Tax Office initiated a special audit of Ottogi on September 25. Sources indicate that authorities are scrutinizing whether company funds were misused for the controlling family’s private expenses and whether profits were siphoned through transactions with related-party companies.
Key Issues Under Investigation
The probe reportedly focuses on three major issues:
Unfair support to related-party affiliates – Authorities are examining whether Ottogi provided undue benefits to Myeon Sa Rang, a company in which Chairman Ham’s brother-in-law, CEO Jung Se-jang, is the largest shareholder. Allegations suggest that Ottogi may have purchased raw materials from Myeon Sa Rang at prices above market value, thereby transferring improper gains.
Tax officials are particularly interested in the fact that Ottogi recently raised product prices citing rising raw material costs, while simultaneously allegedly overpaying Myeon Sa Rang, which could have reduced taxable income and benefited the affiliate.
Myeon Sa Rang, 94.02% owned by Jung and related parties, supplies noodles and sauces to Ottogi. Annual sales from Ottogi affiliates reportedly amount to tens of billions of KRW, with internal transactions making up about 15% of total revenue.
Use of corporate funds for family-owned land development – Investigators are probing whether Ottogi covered development costs for land owned personally by the controlling family.
Suspicious subcontracting practices – Authorities are investigating whether outsourcing fees were excessively paid to a manpower supply company (Company A), with part of the funds allegedly being kicked back to the family through improper means.
Potential Expansion of Investigation
The NTS is reportedly considering whether to expand the probe beyond the corporation to a comprehensive review of the Ham family’s asset formation and funding sources, suggesting the possibility of a high-intensity audit.
Ottogi’s Response
An Ottogi spokesperson told Alpha Economy:
“We understand this to be a routine tax investigation. There has been no mention of specific departments or issues at this stage.”
The spokesperson added:
“Related-party transactions were reviewed during both the 2020 routine tax audit and the 2023 Fair Trade Commission inquiry, and no major issues were identified. We will cooperate fully with the current investigation as well.”
Alphabiz 차혜영 기자(kay33@alphabiz.co.kr)
