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Heo Young-in, chairman of SPC Group, was put on trial for instructing subsidiaries to buy and sell stocks at low prices to avoid gift tax.
The prosecution judged that the stock was traded at a bargain price, and minority shareholders were eventually harmed.
Reporter Park Chan-geun is on the sidewalk.
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Chairman Heo Young-in bowed his head and apologized for the death of a female worker in her 20s at SPL Pyeongtaek Bakery, an affiliate of SPC Group, last October.
This time, he was handed over to trial on charges of causing damage to affiliates and shareholders by transferring shares of affiliates at a bargain price in order to avoid paying gift tax that he and his family should pay.
In 2012, when a controlling shareholder makes a profit from a transaction with a specially related corporation, a new regulation was established to drive the work of large corporations, which is considered the same as a gift and imposes a gift tax.
As a result of this regulation, Chairman Huh has to pay 800 million won in gift tax every year unless he sells his stake in wheat flour producer Mildawon, which the family actually owned.
Chairman Huh instructed Samlip to hand over shares of Paris Croissant and Shani’s Mildawon, the largest shareholder of the family, to Samlip at a bargain price, causing damages of 12.16 billion won to Paris Croissant and 5.81 billion won to Shanien. Prosecutors are watching.
The prosecution estimated that the gift tax that the family had avoided so far was 7.4 billion won.
[Kim Kwang-joong/'Criminal complaint' Shani minority shareholder's attorney: Ultimately, shareholders suffered losses. The prosecution's investigation and prosecution provided an opportunity to prove the minority shareholders' claims more clearly.]
SPC said, "Stock The transfer was carried out after calculating the appropriate value through an external accounting firm," he said, adding that he would explain during the trial.