HDC Chairman Chung Mong-gyu Denies Charges of Submitting False Affiliate Documents

"Companies Operated Independently by Relatives, Unrelated to Chairman Chung"

The legal team for Chung Mong-gyu, Chairman of HDC, who has been accused of submitting false documents related to the designation of a public disclosure-targeted business group, denied the charges at the first trial.

Chung Mong-gyu, Chairman of HDC. Photo by National Assembly Press Photographers Group

On September 4, at the first hearing for violations of the Monopoly Regulation and Fair Trade Act held at the Seoul Central District Court under Judge Lee Hwan-ki, Chung's side made their position clear.

Chung's attorney stated, "We do not admit to the charges. The companies listed in the indictment are not companies controlled by the defendant," adding, "For most of these companies, the defendant does not even know their names, and they are being operated independently of the defendant."

The attorney further added, "There was neither intent nor consideration to submit false documents regarding companies operated independently by the defendant's relatives."

The court has scheduled the next hearing, including witness examination, for January 15 next year.

Previously, the Fair Trade Commission filed a complaint with the prosecution, alleging that Chairman Chung omitted 20 affiliates from the business group designation submissions, excluding duplicates—17 in 2021, 19 in 2022, 19 in 2023, and 18 in 2024.

Among the omitted affiliates, 12 companies—including SJG Holdings—were found to be controlled by the family of Chung's maternal uncle, Park Sejong, Honorary Chairman of SJG Sejong, while 8 companies—including Intrans Shipping—were found to be under the control of Chung's younger sister, Chung Yu-kyung, and her husband, Kim Jong-yeop, CEO of Intrans Shipping.

The Fair Trade Commission determined that the submission of false documents had continued for up to 19 years, from 2006—when Chung was named the head (owner) of HDC—until 2024. However, taking into account the five-year statute of limitations, only omissions from 2021 to 2024 have been included as subject to sanctions.

Meanwhile, the prosecution initiated a summary indictment against Chung, and the court issued a summary order of a fine of 150 million won. Chung, dissatisfied with the decision, has requested a formal trial.

This content was produced with the assistance of AI translation services.