Eland Retail fined $3.33m by South Korean regulator

The regulator said the company gave undue financial support to its parent company.

South Korea's antitrust regulator has decided to impose a combined $3.33m (KRW4.08b) in fines on Eland Retail, an operator of outlet malls, and its parent company Eland World for unfair business activity, Yonhap reported.

Fashion company Eland World, the de facto holding company of Eland Group, unduly received financial support from its affiliate Eland Retail between 2013 and 2017, according to South Korea’s Fair Trade Commission (FTC).

Eland Retail will be slapped with a fine of $1.68m (KRW2.06b) and Eland World with $1.64m (KRW2.02b).

At that time, Eland World suffered from a liquidity crunch and a fall in its credit status following its excessive push for takeovers. Eland Retail provided funds to Eland World free of charge or did not take proceeds or deferred interest from the parent firm over an asset transfer deal.

The FTC said the support, valued at $87.13m (KRW107.1b), helped Eland World tide over its liquidity squeeze and cement its market status.