The

Fair Trade Commission imposed a fine of KRW 66.7 billion in fines on the SPC group and accused the prosecution of the total number and corporations on charges of unfairly supporting affiliates with large stakes in the Anchor family.

For more information, reporters were covered by Labor Gyu.

<Reporter>

SPC made three bakery companies, such as the Paris Croissant, go through Samlip as an intermediate step when purchasing flour, eggs, and ham from production affiliates.

The FTC stated that Samlip had an average annual 9% margin for 210 products without any role, and that the so-called'passage' earned for 5 years from 2013 amounted to 38.1 billion won.

[Jeongjinuk / Fair Trade Commission, Business Group Director: Recipe of → Distribution Corporation → affiliated entity → was become a distribution channel increased by franchisees, franchisees and the shipping prices rise, and eventually earned a result of the price increase to consumers.]

Yet The FTC judged that its affiliated company's sales network was passed to Samlip at a price lower than the normal price, and Samlip used its trademark rights free of charge for nine years.

The FTC believes that SPC Group has contributed a profit of KRW 41.4 billion to Samlip for 7 years, which is suspected to be related to the succession of management rights.

SPC Samlip is the only listed company in the SPC Group and has over 30% stake in the total household price including Chairman Heo Young-in.

[Jinwook Jung/Director of Corporate Group, Fair Trade Commission: In order to maintain control of the total family and to succeed in management, it was necessary to increase the value of stocks by increasing the sales of Samlip.]

The Fair Trade Commission imposed a fine of KRW 66.7 billion in fines with the corrective order for the unfair support of affiliates, and filed a complaint with the prosecution for the total number and former management.

SPC Group is calling for Samlip to play a role in order system and product R&D, but is considering the lawsuit, saying it was not accepted.

(Video editing: Hojin Kim, CG: Seongbeom Jang, Cho Sooin)