Allegations of Slush Fund Creation through Affiliates... Lee Ho-jin, Former Chairman of Taekwang Group, Summoned for Investigation

[Financial News] The prosecution is investigating Lee Ho-jin, former chairman of Taekwang Group, who is suspected of creating slush funds through the group's affiliates.
According to the legal community on the 27th, the Seoul Central District Prosecutors' Office Criminal Division 3 (Chief Prosecutor Choi Soon-ho) is summoning and investigating the former chairman from 2 PM today as a suspect on charges of embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.
The former chairman is suspected of creating tens of billions of won in slush funds by having group executives work at affiliates and falsely paying salaries to their accounts. He is also accused of having an affiliate cover the repair costs of approximately 860 million won for the golf practice range at Taekwang Country Club (CC) and privately using about 80 million won of the affiliate's corporate card.
The police forwarded the former chairman and Kim Ki-yu, former chairman of the Taekwang Group Management Council, without detention on charges of embezzlement and breach of trust in September last year. Taekwang Group claims that these allegations are the sole misconduct of former chairman Kim during the period when the former chairman was absent.



kyu0705@fnnews.com Kim Dong-kyu Reporter