HDC Group announced on the 17th that there was no intent to conceal information after the Fair Trade Commission referred Chairman Mong-Gyu Chung to the prosecution for failing to properly report the status of family-related companies.
In their statement, HDC Group expressed regret over the decision to prosecute, stating, “It was only a simple omission during the reporting process for family companies that have been managed independently without any mutual shares or transactions.” They further explained that the family-run companies such as SJG Sejong and Intrans Shipping, along with their affiliates, are entities in which Chairman Chung holds no shares and have had no transactions or debt guarantees since HDC became independent from Hyundai Group in 1999.
Moreover, they disclosed that these companies were officially acknowledged by the Fair Trade Commission in 2025 as independently managed, confirming that they were not under HDC’s actual control.
The only transaction with a family company was a single contract for building management services between SJG Sejong’s affiliate Kunsthalle and HDC’s affiliate Labs, amounting to 190 million won, which is 0.03% of Labs’ sales revenue.
HDC Group stated that they have improved internal procedures to prevent recurrence and plan to actively clarify that there was no intentional concealment by Chairman Chung in future proceedings.
They emphasized, “HDC prioritizes compliance management and will continue to fulfill corporate responsibilities that align with the demands of the times.”
Previously, the Fair Trade Commission accused Chairman Chung of omitting 20 companies controlled by his younger brother and maternal uncle’s family from the designation data of mutually beneficial enterprise groups for up to 19 years, leading to the prosecution complaint.