이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Korean Air fined for unfair deals with affiliates
- Collected
- 2016.11.28
- Distributed
- 2016.11.29
- Source
- Go Direct
The Fair Trade Commission (FTC) said Korean Air, the country’s largest flag carrier, provided all of its online advertising gains to Cybersky Co., the operator of the airline`s online shopping mall, while the subsidiary conducted simple and minor work such as product image management and ad fee settlement. Such unfair deals began from April 2009. Korean Air also had Uniconverse Co. operate a call center for the airline from 2010 to April this year, while the subsidiary had no track record of doing such. The airline also made an excess payment to Uniconverse for its equipment and maintenance services to Korean Air.
The two subsidiaries are owned by Korean Air Chairman Cho Yang-ho and his three children - Hyun-ah, Won-tae and Hyun-min. They earned unfair gains through transactions using the owner’s family status and limited fair competition. The family raked in about 7 billion won ($5.98 million) from the unfair deals, which were masterminded by Cho Won-tae, according to an FTC report. Korean Air executive vice president Cho Won-tae doubled as the carrier`s passenger business division during the deals.
The FTC imposed a collective fine of about 1.4 billion won on Korean Air and the two affiliates and issued a correction order. Meanwhile, Hanjin Group that has Korean Air under its wing said the FTC’s decision is not acceptable.
By Kim Jung-hwan and Na Hyun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]