Former Kumho Asiana Chairman Park Sam-gu is entering the funeral hall at Seoul Samsung Hospital, where the late Samsung Chairman Lee Kun-hee's wake is being held, on the afternoon of the 26th to pay his respects. Photo by Joint Press Corps
[Asia Economy Reporter Kim Hyung-min] Park Sam-gu, former chairman of Kumho Asiana Group, who is suspected of 'unfair support to affiliates,' appeared at the prosecution office, underwent a lengthy investigation, and then returned home.
According to the legal community on the 16th, former Chairman Park appeared at the prosecution office around 9:30 a.m. on the 15th and underwent an intensive investigation for about 9 hours until 6:30 p.m. He then reviewed the interrogation records until 11 p.m. before leaving the prosecution office.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Min-hyung) summoned former Chairman Park to verify the facts regarding allegations that he unfairly supported Kumho Express (Kumho Holdings), which has a high ownership stake by the group head, by using affiliates such as Asiana Airlines.
The prosecution is expected to organize the investigation and previous investigation details and soon decide on the direction of former Chairman Park's custody.
The prosecution's investigation follows a complaint filed by the Korea Fair Trade Commission (KFTC). Last year, the KFTC filed complaints against Kumho Industrial, Asiana Airlines, former Chairman Park, and two executives of the then Strategic Management Office for allegations including unfair internal transactions.
According to the KFTC, at the end of 2016, Kumho Asiana Group transferred the exclusive in-flight meal business rights of Asiana Airlines to the Swiss Gate Group, and in return, the Gate Group agreed to acquire 160 billion KRW worth of bonds with warrants (BW) of Kumho Express without interest.
However, as the transaction exchanging the in-flight meal business rights and BW acquisition was delayed, Kumho Express fell into financial difficulties. Consequently, nine affiliates including Kumho Industrial lent a total of 130.6 billion KRW to Kumho Express 45 times at interest rates ranging from 1.5% to 4.5%, which were lower than the normal interest rates (3.49% to 5.75%) without collateral.
Due to this support, Kumho Express gained about 16.9 billion KRW in interest rate differences, and the group head family, including former Chairman Park, allegedly received unfair profits such as benefits corresponding to the special relationship shareholding (at least 7.7 billion KRW) and year-end dividends (250 million KRW), according to the KFTC's judgment.
The prosecution launched an investigation into former Chairman Park and Kumho Asiana Group, conducting raids on the Kumho Asiana Group headquarters and Asiana Airlines offices in November last year, securing accounting books and electronic data.
Subsequently, former Executive Director Yoon of the Kumho Asiana Group Strategic Management Office and KFTC employee Song were found to have exchanged money and deleted materials unfavorable to Kumho, and were indicted while in custody. Earlier this month, former Group Strategic Management Director Park was also summoned and investigated as a suspect.
Meanwhile, regarding this matter, Kumho Asiana Group denied the allegations, stating that the in-flight meal business rights transaction and affiliate fund lending were "normal transactions" and "have nothing to do with providing unfair benefits to special related parties."
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