Corporate Image Damaged
KCC Corp. won two major awards in categories including the Best Team in Korea in the 'ALB Korea Awards 2016' selected by legal media ALB (Asian Regal Business) last November.
The event is one of the most prestigious award programs in the legal service sector and approximately 30 specialized undisclosed judges evaluate candidates in 30 categories.
The KCC Compliance Support Team was selected as the best compliance team in the manufacturing industry in the excellent Korean company category divided into finance, construction, manufacturing, and IT. In addition, KCC became a double crown winner by picking up the Best Korean Team Prize by recording the highest points.
Like this, KCC is making efforts to ensure a clean and honest corporate culture through compliance with the in-house compliance support team taking the lead since early 2016.
However, recently KCC CEO Chung Mong-ik lost a legal divorce battle, raising concerns about a possibility of tarnishing its corporate image as an excellent compliance firm.
On December 15, the Supreme Court ruled that Chung lost a divorce lawsuit against his wife Choi. In particular, a growing allegation that Chung had an affair while separated from his wife will inevitably sully the company's brand image as well as hold Chung morally accountable as the owner of KCC, industry watchers say.