Prosecutors raid LG’s head office as part of tax probe

Prosecutors raided the headquarters of LG Group on Wednesday as part of an investigation into an alleged tax evasion by the controlling family of the Korean conglomerate.

Investigators from the Seoul Central District Prosecutors’ Office were sent to search the premises in Yeouido in western Seoul to confiscate evidence including accounting documents, the prosecution said. The residence of Chairman Koo Bon-moo was not included in the warrant.

The probe began after the National Tax Service filed a complaint last month on suspicions that Koo’s family dodged capital gains taxes worth about 10 billion won ($9.24 million).

Prosecutors believe they evaded taxes levied for changes in stock ownership after the Koo family unloaded and increased their equity holdings in LG affiliates.

Prosecutors are also investigating allegations that Koo Kwang-mo, a senior executive of LG Electronics, the chairman’s son and heir to the business, unfairly profited from his majority stake in one of LG’s affiliates.

Yonhap