SEOUL– Prosecutors raided the offices of the nation’s largest bakery chain SPC Group on Tuesday as part of an investigation into alleged unfair practices of awarding business contracts to affiliates.
The Seoul Central District Prosecutors’ Office probing the case obtained relevant documents from the headquarters and offices for allegedly violating a law that bans unfair business practices among the group’s affiliates.
The prosecution is also reportedly investigating new allegations of dereliction of duty on the group’s executives.
Prosecutors suspect the executives committed the unfair practice to make it easier for SPC Group Chairman Heo Young-in’s children to take the wheel of the group.
Affiliates of SPC allegedly helped the group’s only listed affiliate, SPC Samlip, earn 41.4 billion won (US$29.3 million) between 2011 and 2018 by unfairly awarding contracts to it, according to prosecutors.
In 2020, the country’s antitrust regulator fined SPC Group 67.4 billion won for the alleged violation. The regulator also referred three top executives of SPC, including Chairman Hur Young-in, to prosecutors for further investigation.
Source: Yonhap News Agency