Fair Trade Commission Warns SK Chairman Chey Tae-won for 'Subsidiary Report Omission'

[Image source=Yonhap News]

[Asia Economy Reporter Seungjin Lee] The Fair Trade Commission issued a warning to SK Group Chairman Chey Tae-won for omitting some affiliates in his report.

According to the Fair Trade Commission on the 24th, Chairman Chey omitted data on a total of four affiliates, including Paratus Investment and three companies in which this company holds shares, from the "designated materials" submitted to the Fair Trade Commission in 2017-2018.

Designated materials refer to the data on affiliates, relatives, executives, and shareholders that the Fair Trade Commission receives annually from the heads of each group under the Fair Trade Act to designate "public disclosure target business groups."

Paratus Investment is a company owned by former SK executive Mr. A, who acquired the status of a related person of the same person as SK when he was appointed as an outside director of BioLand, an SK affiliate, in December 2014.

Accordingly, Paratus Investment and the other three companies were incorporated as SK affiliates, but Chairman Chey failed to properly report these companies as affiliates to the Fair Trade Commission.

However, the Fair Trade Commission decided not to refer Chairman Chey to the prosecution.

The Fair Trade Commission decides whether to refer cases to the prosecution based on "recognizability" and "seriousness of the violation of obligations." It judged that the recognizability of Chairman Chey's legal violations was minor, and although the seriousness of the matter was considerable, it decided to issue only a warning.