The Korea Herald


Woongjin, Hanwha, STX fined W6b

By Korea Herald

Published : Dec. 29, 2011 - 16:32

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The nation’s antitrust watchdog said on Thursday it slapped the three chaebol Woongjin, Hanwha and STX with fines totaling more than 6 billion won for concentrating orders to affiliate companies.

A fine of 3.43 billion won ($2.97 million) was imposed on Woongjin, 1.48 billion won on Hanwha and 1.13 billion on STX for giving out orders to subsidiaries with low earnings, the Fair Trade Commission said.

Woongjin’s five major affiliates Woongjin Think Big, Woongjin Coway, Woongjin Chemical, Kukdong Engineering and Construction and Woongjin Passone had Woongjin Holdings purchase their supplies for maintenance, repair and operation for six years from 2005. Each company had bought their own supplies until then.

The owner family of Woongjin hold a 78-percent stake in Woongjin Holdings.

“Of the 13 MRO companies run by major conglomerates, Woonjin Holdings was the only firm that collected both distribution margins and well as commissions for the purchases,” the FTC said.

Hanwha Group was caught for insider trading among affiliates that encroached upon the business areas of small and medium-sized companies.

Hanwha Corp. commissioned Hanwha Polydreamer with the sale of cheap industrial fuel, which had been generally supplied by small and medium-sized wholesalers.

By replacing the small partners with an affiliate company and offering greater commissions, Hanhwa Corp. gave 2.64 billion won to Hanwha Polydreamer, which had no experience in distribution of the industrial fuel.

STX Offshore and Shipbuilding Co. entrusted STX Construction Co., which had never built apartments before, with an apartment construction project in 2007 and paid 5.6 billion won for it by 2009. STX Group chairman Kang Duk-soo’s family holds a 75-percent stake in STX Construction.

STX Construction was paid 15 percent higher per square meter than a non-affiliate company that won an apartment construction order around the same time.

By Kim So-hyun (