Another Case of Korean Nepotism? Jungheung Construction Helped the Chairman’s Son Build a Billion-Dollar Empire

Another Case of Korean Nepotism? Jungheung Construction Helped the Chairman’s Son Build a Billion-Dollar Empire

Just saw the news about Jungheung Construction and honestly, it’s peak Korean chaebol nepotism.

Quick rundown:

  • In Sejong City, an apartment complex was built by a company called Jungheung Engineering & Construction — owned 100% by the chairman’s son (Jung Won-joo).
  • The son’s company wasn’t creditworthy, so banks didn’t want to give loans. But Jungheung Construction (dad’s company) swooped in and promised to cover any losses — for free. This let the project move forward.
  • Turns out, from 2015 to 2023, this happened across 12 projects. The father’s company gave 3.2 trillion won (around $2.3 billion USD) worth of guarantees and funding support — again, for free.
  • Thanks to all this, the son’s company skyrocketed from being worth 12 billion won in 2007 to posting 6.7 trillion won in revenue and 1 trillion won in profit.
  • He even ended up acquiring Daewoo E&C and pretty much completed his management takeover of the entire group.
  • Personally, the son made 650 billion won in dividends and 51 billion won in salary — all while piggybacking on daddy’s company.

Now the Fair Trade Commission has fined them 180 billion won and filed a complaint with prosecutors. Jungheung says they gave a proper explanation but the FTC didn’t buy it.

TBH:
LMAO he made 701 billion, and the “punishment” is a 180 billion won fine. That’s less than a third of what he walked away with. If this is the cost of doing business, why wouldn’t chaebols keep doing this?

Feels like another case where the system slaps a wrist after someone’s already cashed out.

submitted by /u/hwanks
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