For Making Undue Profit with GLAD Hotel Trademark

DL Group chairman Lee Hae-wook (DL E&C)

The prosecution demanded a one-and-a-half-year prison term for Daelim Group chairman Lee Hae-wook for making undue profit using the trademark of the group’s hotel brand GLAD.

Prosecutors also demanded a fine of 100 million won each for DL Corp., which owned the trademark, and GLAD Hotels & Resorts, which used the trademark, at a trial held at the Seoul District Court on July 13.

Lee was accused by the Fair Trade Commission in May 2020 of handing over the trademark of the group's hotel brand GLAD to APD, a company wholly owned by Lee and his son Lee Dong-hoon, and having GLAD Hotels & Resorts, a subsidiary of DL Group, pay royalties to APD for using the trademark.

The FTC found that GLAD Hotels & Resorts, which leased and operated GLAD Hotel Yeouido from January 2016 to July 2018, paid about 3.1 billion won to APD.

Prosecutors say that chairman Lee and his son made undue profit by having a brand developed by Daelim Industrial (currently DL Corp.) registered under the name of APD.

According to the FTC, Daelim Industrial developed its own hotel brand, GLAD, in 2013 as it sought to enter the hotel business. The company developed its Yeouido office into GLAD Hotel Yeouido in 2014.

Lee handed over the hotel brand trademark rights to APD, which was established in 2010 by Lee and his eldest son Lee Dong-hoon, who was then an elementary school student. 

The sentencing trial for Lee is scheduled to take place at 2 p.m. on July 27.

Meanwhile, before this trial, chairman Lee was fined in 2016 by the court for verbally abusing and assaulting his chauffeur.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution