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Taekwang chairman questioned over slush fund

Taekwang Group chairman Lee Ho-jin appeared before prosecutors Tuesday to face questioning over his alleged slush fund and stock price manipulation.

Prosecutors have been investigating the 49-year-old on his suspected involvement in creating tens of billions of won in a secret fund to lobby influential figures to get business favors and manipulating stock prices to evade inheritance taxes in transferring his wealth to his son, the Seoul Western District Prosecutors’ Office said.

The latest development comes nearly two months after investigators in October raided the group’s headquarters as well as homes of his family and relatives.

Taekwang Group, the nation’s 40th largest family-owned business, has been under suspicion of lobbying political figures to win a cable TV channel license from the state broadcasting authority, but it failed to win broadcasting rights in a bidding announced last week.

Prosecutors said they will also soon summon Lee Seon-ae, the chairman’s 82-year-old mother who is said to be in charge of the group’s financial management.
(Yonhap News)