Minister of Land, Infrastructure and Transport Won안전놀이터 Hee-ryong said on the 16th that he was “really angry” at the Fair Trade Commission’s imposition of fines on lakeside construction, saying, “It’s not over until it’s over.”
Minister Won posted a post on Facebook that day, saying, “After Hoban Construction won a large number of real public housing lands through a bee-bid, they transferred it to their two sons’ companies and made their sons prosperous company presidents.” Although the Fair Trade Commission imposed a penalty of 60.8 billion won on this, the companies run by the two sons of Hoban Construction earned more than 1.3 trillion won in pre-sale profits alone.”
Swarm bidding means bidding by mobilizing several camouflage affiliates to increase the chances of successful bidding for public housing sites. Minister Won said, “After the Ministry of Land, Infrastructure and Transport investigates whether or not the registration criteria are met at that time, more detailed illegality will be revealed through investigations by the police and prosecutors.”
Previously, the Ministry of Land, Infrastructure and Transport had requested the police to investigate the 2019-2021 bee swarm bidding for Hoban Construction. Minister Won said, “We will fundamentally block the bee swarm bidding through institutional supplementation.
Previously, on the 15th, the Fair Trade Commission imposed corrective orders and fines of 60.8 billion won on nine companies, including Hoban Construction, for “unfair insider trading” in which Hoban Construction unfairly supported the eldest and second son companies and provided business opportunities. The fine of 60.8 billion won is the third largest fine ever imposed for unfair support cases.
In this case, Hoban Group Chairman Kim Sang-yeol unfairly supported Hoban Construction Housing, which was run by his eldest son Kim Dae-heon, and Hoban Industries, where his second son, Kim Min-seong, was executive director. Through this support, second-generation companies such as Hoban Construction Housing and Hoban Industry grew significantly, and as a result, the de facto succession of management rights to the eldest son Kim Dae-heon was completed. The Fair Trade Commission saw it as “an expedient succession of management rights to the second generation of the same person over a long period of time.”