[비즈한국] It has been confirmed that DB Inc. and 15 entities, including Samdong Heungsan, have filed a lawsuit to cancel the Fair Trade Commission's (FTC) decision to deem them as affiliates of the DB Group. Prior to a ruling on the merits, the court accepted the plaintiffs' request and suspended the effect of the order. This marks the beginning of a legal battle over the FTC's designation of DB Group affiliates.
According to Bizhankook's coverage, DB Inc. and the 15 entities labeled as DB Group affiliates by the FTC filed a lawsuit on April 30 to cancel the order. On the same day, they applied for an injunction to stay the execution of the order, which was granted on the 19th of last month. Consequently, the effect of the FTC's order is suspended until a final judgment on the merits is reached. The Seoul High Court has jurisdiction over the first trial for lawsuits challenging FTC decisions.
The lawsuit involves DB Inc., 13 companies—including Samdong Heungsan, Biltech, Neuron Engineering, Top Serve, Comeland, Sangrok Steel, Pyeongchang City Bus, Gangwon Heung-up, Gangwon Ilbo, Gangwon Passenger Transport, Donggu Farm, Yangyang City Bus, and Daeji Farming—and two foundations, the Donggok Social Welfare Foundation and the Donggok Forest Culture Foundation. The 13 companies were notified as DB Group affiliates, and the two foundations were notified as persons related to the controlling shareholder. DB Inc., the holding company for DB Group's manufacturing and service affiliates, is 43.7% owned by the founding family.
In January, the FTC issued the deemed inclusion order for the 15 entities as DB Group affiliates. Deemed inclusion is a measure where the FTC considers entities to have been affiliates from a certain point in time, identifying that a corporate group omitted these entities from their list of subsidiaries. The FTC can request data for the designation of corporate groups subject to disclosure, and if affiliates or parties related to the controlling shareholder are omitted, it can issue a deemed inclusion order.
In February, the FTC decided to report DB Group Founder and Chairman Kim Joon-ki to the prosecution, alleging he omitted the Donggok Social Welfare Foundation and its 15 subsidiary companies from the status report submitted for the designation of corporate groups subject to disclosure. The FTC determined that the DB side managed these entities as affiliates and utilized them to maintain the founding family's control and for private interest. The Seoul Central District Court issued a summary order of a 150 million KRW fine to Chairman Kim on April 30, and Chairman Kim's side has appealed by requesting a formal trial.