Arrest warrant sought for Taekwang chairman

Prosecutors yesterday sought a warrant to arrest Taekwang Group Chairman Lee Ho-jin, who has been investigated over allegations of illegally raising slush funds and lobbying influential figures for business favors.

According to investigators at the Seoul Western District Prosecutors’ Office, Lee allegedly embezzled 42.4 billion won ($38 million) in company funds by fabricating statistics on production.

Lee also allegedly manipulated sales records of Taekwang Group and evaded 3.9 billion won in tax.

“After scrutinizing Lee’s 7,000 bank accounts and stocks kept under other people’s names, Lee raised and managed 300 billion won in slush funds,” a prosecutor said in a briefing yesterday.

Prosecutors also alleged Lee caused 38.2 billion won in losses to a subsidiary by acquiring its golf practice range at a giveaway price.

The probe into Taekwang Group began last year when prosecutors raided its headquarters in Jangchung-dong, central Seoul, in October.

The residence of Lee Sun-ah, mother of Lee Ho-jin, was raided later in connection with allegations that she is behind the Taekwang multibillion won slush fund.

Lee appeared before prosecutors three times. His mother was summoned on Jan. 12.

By Kim Mi-ju, Jeong Seon-eon [mijukim@joongangc.co.kr]