Fair Trade Commission Begins Sanctions Against SM Group Over Alleged Unfair Internal Transactions

Yonhap News Agency

The Fair Trade Commission has reportedly begun imposing sanctions on SM Group over allegations of unfair internal transactions among its affiliates.

According to industry sources on November 27, the Fair Trade Commission recently sent an examination report to the parties involved, including SM AMC Investment Loan and HN ENC, both affiliates of SM Group, outlining its opinion that they violated the Monopoly Regulation and Fair Trade Act (Fair Trade Act).

The Fair Trade Commission is said to have determined that SM AMC engaged in unfair practices, such as channeling apartment development projects to a company owned by the second daughter of SM Group Chairman Woo Ohyun, and has thus initiated sanctions.

The examination report is a document that contains the facts of the violations identified by the Fair Trade Commission and its opinion that sanctions should be imposed; it is equivalent to an indictment in a criminal trial.

SM Group may submit its opinion in response, and the Fair Trade Commission is expected to hold a plenary session and other meetings to discuss the level of sanctions in earnest.