BUSINESS

Hanjin Group chief grilled by police

By Won Ho-jung
  • Published : Sept 19, 2017 - 16:47
  • Updated : Sept 19, 2017 - 16:47
Hanjin Group’s chief executive was questioned by police Tuesday regarding allegations that he used company funds to renovate his private home.

Cho Yang-ho, who heads the group that runs Korean Air, appeared at the National Police Agency for questioning. He told reporters before the session that he would “fully cooperate with the investigation.”

Cho Yang-ho, Hanjin Group’s chief executive, appears for questioning at the National Police Agency in Seoul on Tuesday. (Yonhap)

Cho is suspected of using approximately 3 billion won ($2.65 million) of the company’s money that had been earmarked for the construction of a Korean Air hotel in Incheon for the renovation of his home between May 2013 and August 2014.

Police first caught wind of the alleged crime while investigating an interior design company known to have worked with top executives of major corporations in Korea. 

After raiding the Korean Air headquarters in eastern Seoul for related documents, police summoned both Cho and his wife, Lee Myung-hee, for questioning last month to determine how involved the chairman may have been in the misappropriation. 

Another Korean Air official, surnamed Kim, has been arrested on embezzlement charges. 

Cho’s summons were postponed to Tuesday for health reasons. Police will determine whether to summon Lee after completing questioning of Cho. 

By Won Ho-jung (hjwon@heraldcorp.com)