[THE INVESTOR] The chief of Lotte Chemical was summoned by prosecutors on Aug. 11 to face questioning over a string of irregularities.

Huh Soo-young appeared before the Seoul Central District Prosecutors’ Office over allegations of lobbying the local tax authorities and engaging in the company’s unlawful suit against the government.

“I will fully cooperate with the prosecution,” he told reporters before entering the prosecutors‘ office.

KP Chemical Corp., a subsidiary of Lotte, which later turned into Lotte Chemical, is suspected of filing a suit against the government in 2006 with doctored accounting records and getting some 27 billion won (US$24 million) in tax refunds.

The company is also suspected of handing over some 20 billion won of illegal commission fees to its affiliate to create billions of won in slush funds.

(theinvestor@heraldcorp.com)