Fair Trade Commission launches sanctions on Jungheung Engineering & Construction for 'unfair support of affiliates worth 10 billion won'

The Fair Trade Commission is taking steps to sanction Jungheung Construction Group over its alleged unfair support for its affiliates worth 10 billion won.

Earlier this month, the FTC sent an examination report to Jungheung Construction Co. alleging a violation of the Fair Trade Act.

Jungheung Engineering & Construction is accused of providing unfair support by distributing the public housing development projects won by bidding to affiliates and providing payment guarantees for real estate project financing loans handled by affiliates for free.

It is reported that the amount of unfair support reached 10 billion won by exempting the fee in exchange for payment guarantees.

Among the affiliates that received unfair support is a company owned by Vice Chairman Jung Won-joo, the eldest son of Chung Chang-sun, chairman of Jungheung Construction.

The FTC will soon hold a review of the case and decide whether or not to impose sanctions.

With an asset of 25 trillion won, Jungheung Construction belongs to a mutually restricted business group, also called a large business group, and is the 21st largest in the business world.