The Korea Fair Trade Commission imposed Jungheung sanctions on its affiliates for failing to resolve debt guarantees of 80 billion won

The Korea Fair Trade Commission imposed Jungheung sanctions on its affiliates for failing to resolve debt guarantees of 80 billion won: COMPANY / Reporter Kim Jisun / 2024-04-11 03:40:34

[Alpha Biz= Reporter Kim Jisun] Jungheung, which did not resolve 80.6 billion won in debt guarantees within the group and switched to a holding company, will be sanctioned.

According to the Fair Trade Commission on the 9th, the FTC recently issued a correction order to Jungheung, which violated the Fair Trade Act.

Jungheung is a company that owns Jungheung Construction, Daewoo Engineering & Construction, Herald Edu and Sejong ENG, and was found to have violated the Fair Trade Act by switching to a holding company without addressing 80.6 billion won in debt guarantees within the group.

Under the Fair Trade Act, a group of companies subject to restrictions on cross-shareholding may establish a holding company or convert it into a holding company after resolving debt guarantees between holding companies and subsidiaries, subsidiaries and affiliates.

However, Jungheung Construction reported the conversion of the holding company in April last year without resolving the debt guarantee within the group, even though the same person of Jungheung Construction, a group of companies restricted from cross-shareholding, controls the business.

As of May 1, 2022, the total amount of debt guarantees in the group was 80.6 billion won.