Aekyung Industrial and SK Chemicals will be investigated by prosecutors for failing to comply with the Korea Fair Trade Commission's order to publicly disclose their unfair labeling practices related to the humidifier disinfectant case.
On October 29, the Fair Trade Commission announced its decision to file criminal complaints against both the corporations and CEOs of Aekyung Industrial and SK Chemicals for significantly delaying the execution of the "public disclosure of corrective order" that had been issued to them.
In March 2018, the Fair Trade Commission imposed a fine of 122 million won, a prohibition order, and a public disclosure order on the two companies for concealing the fact that the main ingredient in the "Home Clinic Humidifier Mate" disinfectant they manufactured and sold was a toxic substance, and for falsely labeling and advertising the product as if it had been verified for safety and quality.
Afterward, both companies appealed the Fair Trade Commission's sanctions by filing administrative lawsuits and requests for injunctions in April 2018. Following lawsuits that lasted 5 years and 8 months, and 6 years and 7 months respectively, the Supreme Court ultimately upheld the rulings.
Companies ordered by the Fair Trade Commission to make a public disclosure must do so within 30 days. However, both companies failed to publicly disclose their violations within the deadline, only fulfilling the order after delays of 1 year and 2 months, and 7 months, respectively.
The Fair Trade Commission stated, "We will thoroughly monitor whether corrective measures confirmed by court rulings are being implemented, and will respond strictly in accordance with the law and principles to any attempts to evade or delay implementation."
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