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Photo = Fair Trade Commission |
[Alpha Biz= Reporter Kim Sangjin] The Fair Trade Commission (FTC) has issued a warning to EcoPro Group’s corporate venture capital (CVC) arm, EcoPro Partners, for violating CVC activity restrictions.
The FTC’s investigation revealed that from October to November 2022, EcoPro Partners established three venture investment funds—iSquare ESG Fund No. 3, iSquare Chungcheong Angel Bridge Fund No. 1, and iSquare ESG Fund No. 4—each with external investments exceeding 40%. This level of external funding violates the restrictions placed on CVCs under general holding companies.
Since November 5, 2021, EcoPro has operated as a general holding company and owned 55% of EcoPro Partners, thereby subjecting it to specific CVC investment restrictions under the Fair Trade Act. Additionally, in the case of iSquare ESG Fund No. 4, a related party issue was found when Lee Yeon-soo, daughter of former EcoPro Chairman Lee Dong-chae, invested 30 million KRW in the fund. This constitutes a breach of regulations prohibiting CVCs owned by general holding companies from establishing funds involving contributions from related parties.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
