CJ CGV under investigation over giving chairman’s family unfair deals

[THE INVESTOR]  CJ CGV has come under investigation over allegations that the company gave unfair advantage to members of CJ Group Chairman Lee Jay-hyun.

The Seoul Central District Prosecutors’ Office revealed on Oct. 20 that it has begun investigations into CJ CGV following a report from the Fair Trade Commission. 

The antitrust watchdog said it has found that JS Communications, an ad unit 100 percent owned by the CJ's younger brother Lee Jay-hwan, has enjoyed unfairly exclusive rights to handle CJ CGV’s ad sales since its establishment in 2005.

The FTC said that JS Communications was contracted to produce adverts for the cinema chain between 2005 and 2011, and that the fee paid to the company was about 25 percent higher than that paid to the previous contractor.

By Choi He-suk (cheesuk@heraldcorp.com)