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Fair Trade Commission imposed a fine of 4.9 billion won, accusing Harim Group of unfairly supporting the son's private company by mobilizing affiliates. It is judged that profits were driven in various ways, but there are also pointed out that the prosecution's accusation is omitted and the level of sanctions is low.

Reporter Lee Seong-hoon reports.


Harim Group, a company specializing in chicken.

Although the holding company is 'Harim Holdings', the private company 'Allpum', in which Chairman Kim Hong-guk donated 100% of his stake to his eldest son Jun-young, effectively controls the company over the holding company.

The Fair Trade Commission judged that Harim mobilized its affiliates to strengthen the group's management rights and drove unfair profits to 'All Pum'.

It is said that the five Harim-affiliated pig farms purchased the animal medicines they were buying individually through All-Pum, and bought them at a higher price than the market price.

In addition, Harim-affiliated feed companies dealt directly with feed additive manufacturers, and I saw that Olpum intervened in the process without playing any role and collected a middle margin of 3%, a so-called 'toll tax'.

The sales of Allpoom, which were in the range of 70 to 80 billion won before the donation of shares, surged more than 400% to 346.4 billion won after becoming the son's company.

The Fair Trade Commission reported that Allpum received 7 billion won unfairly and imposed a correction order and a fine of 4.88 billion won on eight Harim affiliates and Allpum.

[Kwon Seong-Kwon/Fair Trade Commission Corporate Group Director: This raises concerns about the concentration of ownership centered on Olpum, dominated by the second generation of the same person, and market concentration that strengthens the business position of Olpum regardless of one's own competitiveness.]

2017 The FTC investigation into Harim, which began in 2011, was significant in that it was the first ex officio investigation under Chairman Kim Sang-jo's regime.

On the other hand, Harim's representative said, "It is unfortunate that excessive sanctions were imposed."

(Video coverage: Kim Min-cheol, Video editing: Lee Seung-jin, VJ: Jung Min-goo)