Sung Gi-hak, the chairman of Youngone, known for its outdoor brand 'The North Face', faces allegations from the Fair Trade Commission (FTC) for allegedly omitting companies owned by himself and his family from corporate group reports. This manipulation allowed Youngone to evade classification as a large corporate group from 2021 to 2023, thereby escaping various regulatory obligations associated with such a designation. The FTC disclosed that during this period, Sung failed to report a total of 82 companies, including those owned by his daughters and relatives, which has been recognized as the largest omission of its kind so far.

Between 2021 and 2023, Youngone's oversight of the status of affiliated companies included the omission of major subsidiaries like Youngone Trade Holdings, which are engaged in production for international brands. The FTC concluded that the omission of companies, particularly those directly owned by Chairman Sung as well as transactions involving companies owned by his daughters, significantly undermined transparency regulations. The inquiry indicates that despite potential difficulties depending on the familial relationship, the exclusion of companies entirely owned or closely linked to his family members demonstrates a blatant disregard for regulatory compliance.

Consequently, Youngone is set to be classified as a large corporate group from 2024, thus incurring new obligations regarding reporting on internal transactions and capital investments among subsidiaries. The nondisclosure of substantial asset holdings of the omitted companies, totaling approximately 3.24 trillion won, raises serious concerns regarding corporate governance and accountability within the company and underscores the importance of rigorous enforcement of corporate regulations to prevent evasion by influential corporate figures.