Lawyers for HDC Group Chairman Chung Mong-gyu, who faces charges of omitting relative-controlled companies from corporate group designation filings, denied the allegations during his first trial on the 4th, arguing that "they are not companies under his control and he does not even know their names."

Chung's legal team made the remarks during the first hearing for his Fair Trade Act violation case held before Judge Lee Hwan-ki of Criminal Division 26 at the Seoul Central District Court.

Chung's defense counsel stated, "The companies listed in the indictment are not entities controlled by the defendant," adding, "Most of these companies are ones the defendant does not even know the names of, and they are operated independently of him."

The counsel further argued, "There was neither the intention nor any thought of submitting false data regarding companies independently operated by relatives without any connection to the defendant."

Meanwhile, prosecutors outlined the summary of the indictment, stating that Chung omitted some family-owned affiliates while submitting data for the designation of cross-shareholding restricted corporate groups from 2021 to 2024.

The court decided to hold the next hearing on January 15 of next year to proceed with witness examinations and other procedures.

The Fair Trade Commission (FTC) filed a complaint with prosecutors alleging that Chung omitted 20 affiliates, excluding overlaps, from corporate group designation filings—17 in 2021, 19 in 2022, 19 in 2023, and 18 in 2024.

The FTC determined that among the omitted affiliates, 12 companies including SJG Holdings were controlled by the family of Park Se-jong, honorary chairman of SJG Sejong and maternal uncle to Chung, while 8 companies including Intrans Shipping were controlled by the family of Chung's younger sister, Chung Youkyung, and her husband, Kim Jong-yeop, CEO of Intrans Shipping.

The FTC estimated that the submission of false data continued for up to 19 years, spanning from 2006—when Chung was designated as the head (controller) of HDC—to 2024.

However, taking into account the 5-year statute of limitations, only the omission acts from 2021 to 2024 were included in the scope of sanctions.

Prosecutors summarily indicted Chung, and the court subsequently issued a summary order imposing a fine of 150 million won.

Chung objected to the decision and requested a formal trial.

(Photo: Yonhap News)