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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Jung Do-won, chairman of SAMPYO Group, has been indicted on charges of breach of trust and violating the Fair Trade Act for allegedly directing unlawful support to an affiliate controlled by his eldest son.
According to a report by the Seoul Shinmun on the 24th, the Seoul Central District Prosecutors’ Office indicted Jung and former SAMPYO Industry CEO Hong Sung-won without detention.
Prosecutors allege that Jung instructed SAMPYO Industry to purchase powdered raw materials for ready-mix concrete from SP Nature—where his son is the largest shareholder—at prices about 7% above market rates starting around 2015. Despite industry norms of offering discounts during slow construction periods or for bulk orders, SP Nature was allowed to maintain exclusive supply at inflated prices.
After internal complaints, Jung reportedly ordered the price gap reduced to about 4%, which prosecutors believe was meant to avoid violating corporate tax rules on unfair transactions. Between 2016 and 2019, SAMPYO Industry continued to buy at elevated prices, resulting in ₩74.97 billion in undue benefits for SP Nature.
The overpricing included:
Slag powder at ₩53,000 per ton
Fly ash at ₩31,000–₩38,000 per ton
Both approximately 4% above market value.
The Korea Fair Trade Commission had already referred the case to prosecutors in August last year, citing unfair internal support.
Prosecutors said the indictment demonstrates a “strict response to illegal practices aimed at hereditary control,” emphasizing that violators will face consequences regardless of corporate status.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
