Companies under LS Group were slapped with a combined fine of 26 billion won ($23.6 million) and remedial order for violating antitrust rules for suspicious inside business trade benefiting a company owned by the heirs of the founding family.

The Fair Trade Commission said Monday that it fined LS Corp. 11.1 billion won, LS-Nikko Copper Inc. 10.7 billion won, LS Cable & System Ltd. 3.3 billion won and LS Global Inc. 1.4 billion won. It also referred six people including LS Group Chairman Koo Ja-hong and LS Chairman Koo Ja-yeop to the prosecution for further investigation.

The companies are accused of providing unfair support to LS Global, founded in 2005 and owned by group’s younger-generation family members, to help the firm raise illegal profits through sales of electrolytic coppers it bought from LS-Nikko Copper to LS affiliates including LS Cable, Gaon Cable, JS Cable and LS Metal.

The FTC found the illegal inter-affiliate trading helped LS Global reap profits amounting to 13 billion won, 31.4 percent of its operating profit and 53.1 percent of net profit since 2006, although it did nothing for the transactions.

Shares of LS closed Monday down 4.17 percent at 80,500 won. LS-Nikko Copper, LS Cable & System, and LS Global are not listed.

By Seok Min-soo and Choi Mira

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