The prosecution, investigating allegations that Sampyo Industrial unfairly supported a second-generation family company by purchasing ready-mixed concrete raw materials at inflated prices, has summoned and questioned former Sampyo Group CEO Lee Oh-gyu.
According to the legal community on the 11th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Yong-sik) called in the former CEO for questioning. Lee served as CEO from 2018 to 2020.
The prosecution is focusing on the fact that Sampyo Industrial funneled 7.5 billion won in profits between 2016 and 2019 to SP Nature, a ready-mixed concrete raw material company where Vice Chairman Jung Dae-hyun, a second-generation family member, is the largest shareholder, with the aim of making SP Nature the parent company of the Sampyo Group. In particular, the prosecution believes that Sampyo Industrial purchased the ready-mixed concrete raw material 'powder' under favorable conditions from SP Nature.
This case began with a complaint from the Fair Trade Commission. In December last year, the prosecution indicted Sampyo Industrial and former Sampyo Industrial CEO Hong Sung-won on charges of violating the Fair Trade Act, and has also been investigating other allegations such as embezzlement and breach of trust involving former CEO Hong.
The Fair Trade Commission viewed that despite a decline in sales and operating profits due to a sluggish construction market, Sampyo Industrial purchased powder from SP Nature at prices higher than market rates, enabling SP Nature to secure a 4% profit margin above market prices in all transactions. SP Nature's sales surged significantly from 153.8 billion won in 2016 to 552.9 billion won in 2019.
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