Prosecutors question SK Group’s Chey

SK Group’s vice chairman appeared before prosecutors yesterday for questioning over allegations that he embezzled nearly 100 billion won ($88.8 million) of company funds in collusion with the group’s chairman, who is also his older brother.

Chey Jae-won, 48, entered Seoul’s main prosecutors’ office close to 10 a.m. “I will sincerely respond to the prosecution investigation,” Chey told reporters.

The second son of SK Group’s founder, Chey Jong-hyon, is facing allegations that he misappropriated 99.2 billion won from SK affiliates to make up for futures investment losses incurred by his older brother and the group’s chairman, Chey Tae-won.

Chey Jae-won is suspected of leading the embezzlement, which purportedly also involved money laundering. The brothers allegedly diverted the funds out of 280 billion won pooled by the group’s 18 affiliates for investment purposes in recent years. Prosecutors are also considering summoning Chairman Chey after questioning the vice chairman. Yonhap