Seoul: The Fair Trade Commission (FTC) announced on Wednesday that it has imposed significant fines amounting to 93.5 billion won (US$64.8 million) on three construction companies and the CJ Group for engaging in illegal inter-subsidiary transactions.

According to Yonhap News Agency, the FTC has fined Daebang Construction Co., JungHeung Construction Co., Woomi Co., and CJ Group. The commission has also referred these companies to the prosecution following a government investigation into unfair internal deals linked to public land development projects.

The FTC's investigation revealed that Daebang Construction was fined for providing improper support to affiliated companies owned by the chairman's family by transferring ownership of public housing sites, which were expected to generate substantial development returns. JungHeung Construction faced sanctions for allegedly offering free guarantees worth trillions of won to a company owned by a family member of its chairman.

CJ Group, a prominent food-to-entertainment conglomerate, was accused of illegally channeling funds into a financially troubled affiliate through derivatives. Meanwhile, Woomi, a midsized real estate developer, was penalized for allegedly directing large-scale construction projects to its affiliates, including a company owned by a family member of the chairman.