[THE INVESTOR] The heir to Hite Jinro and two other company executives including the CEO will stand trial on charges of arbitrarily making contracts with an affiliate tied to the scion to help boost its sales, prosecutors said on Jan. 29.
Park Tae-young, head of Hite Jinro’s management strategy division and the eldest son of former Chairman Park Moon-deuk, has been indicted without physical detention for violating laws related to fair trading, the Seoul Central District Prosecutors’ Office said.
Prosecutors also indicted the company’s CEO Kim In-kyu and another executive, identified only by his last name Kim, on the same charges without detaining them.
They are accused of giving undue favors to an equipment manufacturing affiliate by signing contracts worth 4.3 billion won (US$3.84 million) with an aim to help boost sales. The younger Park holds a controlling stake of 58.44 percent in the equipment firm.
Prosecutors investigated them after the state anti-trust watchdog filed a complaint early last year against the Hite Jinro officials based on its own inquiry result.
The officials have apparently admitted to the charges. Hite Jinro said in a release to media that it will faithfully face the court proceedings.
By Ram Garikipati and newswires (email@example.com)