Published : Dec. 27, 2019 - 10:39
The prosecution said Friday that it has indicted the chief of South Korean textile and chemical conglomerate Hyosung Group without detention on charges of violating the fair trade law.
"We indicted Hyosung Group Chairman Cho Hyun-joon the previous day," the Seoul Central District Prosecutors Office said.
(Yonhap)
Earlier, the Fair Trade Commission had reported the 51-year-old Cho to the prosecution for providing unfair financial assistance to ailing Galaxia Electronics Co., a Hyosung affiliate in which he is the largest shareholder, via a total return swapb in late 2014. TRS is a financial contract that transfers both the credit risk and market risk of an underlying asset.
At that time, the light-emitting diode manufacturer, Cho's virtual private company, was on the verge of bankruptcy with a management crisis, and the TRS was allegedly arranged at a group level.
Cho, a grandson of the late Hyosung founder Cho Hong-je, took over the group chairmanship from his father Cho Suck-rai in 2017.
Hyosung, the nation's 22nd-largest conglomerate in terms of assets, has 57 affiliates, with its businesses stretching from textiles, chemicals and trading to heavy industries and construction. (Yonhap)