Former Taekwang Group Chairman Lee Ho-jin, who is under police investigation for embezzlement and breach of trust, is facing the possibility of arrest.
According to the police on the 13th, the Seoul Metropolitan Police Agency’s Anti-Corruption Investigation Team applied for an arrest warrant for Lee on the 7th, based on charges of embezzlement and breach of trust under the Specific Economic Crimes Act.
The pre-arrest examination of the suspect is scheduled to take place on the 16th at 10:30 a.m. at the Seoul Central District Court.
The police are investigating allegations that Lee used group affiliates to create tens of billions of won in slush funds. They suspect that Lee arranged for some employees to receive dual salaries by violating the prohibition on executives holding concurrent positions and arranging for some to receive double salaries by working for two different companies.
Additionally, the police are looking into allegations that Lee directed Taekwang CC to pay 860 million won for a golf driving range construction project and that he privately used a corporate card of an affiliate company for about 80 million won.
However, Taekwang Group has claimed that most of the charges against Lee are actually actions committed by former chairman Kim Ki-yu, who oversaw the group’s management. They argue that as Kim is facing legal troubles and risks prosecution in the investigation by the prosecution, he is attempting to shift blame onto Lee.
(Photo=Yonhap News)