Prosecutors Indict Hanwha Solutions... Allegations of 'Preferential Work Allocation' to Family-Owned Company

Han Express Alleged Unfair Support Charges

[Asia Economy Reporter Jin-ho Kim] Hanwha Solutions Corporation has been brought to trial for unfairly supporting its affiliates controlled by the family of the group’s head for over a decade.

The Seoul Central District Prosecutors' Office Fair Trade Investigation Division (Chief Prosecutor Jinwon Go) announced on the 24th that Hanwha Solutions Corporation was indicted for violating the Monopoly Regulation and Fair Trade Act.

Hanwha Solutions is accused of unfairly supporting approximately 8.7 billion KRW by funneling all export container transportation volumes to 'Han Express' from June 2008 to March 2019 and paying transportation fees higher than market rates. Additionally, from January 2010 to September 2018, it is alleged that Hanwha Solutions added Han Express, which had no substantial role, to the transportation transaction stage while selling hydrochloric acid and caustic soda, and funneled tanker truck transportation volumes worth about 150 billion KRW in total transaction payments.

Han Express is a company owned by the family of Kim Seung-yeon, chairman of Hanwha Group, who is his elder sister’s family. Investigations revealed that until May 2009, Chairman Kim owned it under a borrowed name and managed it through the Group’s Management Planning Office before selling it to his sister’s family.

Previously, the Fair Trade Commission, which investigated the case, imposed a fine of 15.7 billion KRW on Hanwha Solutions in November 2020 and referred the corporation to the prosecution.