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Chung Do-won (Photo = Yonhap News Agency) |
[Alpha Biz= Ellie Kim] The trial of Chung Do-won, accused of orchestrating unfair transactions worth KRW 7.4 billion to facilitate management succession, has begun.
The Seoul Central District Court held its first hearing on April 22 for Chung and former Sampyo Industry CEO Hong Sung-won on charges including violations of the Fair Trade Act and breach of trust. Sampyo Industry was also indicted under corporate liability provisions.
Prosecutors allege that Chung directed Sampyo Industry to purchase raw materials from affiliate SP Nature at prices about 4% higher than non-affiliates to support the company, where his son is the largest shareholder, thereby aiding succession.
The defense argued that SP Nature provided additional services such as stable and timely supply, justifying the pricing. They denied all allegations, stating the transactions were based on reasonable business judgment and did not cause losses.
The court is scheduled to hold the next hearing on May 20.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
