Prosecutors summoned the chairman of Himart Co., a major South Korean home appliance retailer, on Monday for questioning on the charges of capital flight and tax evasion.

Sun Jong-koo is accused of stashing personal assets and company funds overseas as well as using irregular methods to transfer wealth to his offspring without paying due taxes, according to officials.

The summons came after prosecutors and the nation's tax agency launched the probe and raided the Seoul-based office of Himart at the end of last month.

Prosecutors said they plan to interrogate Sun over alleged offshore tax evasion schemes, which include establishing paper companies in European tax havens, like Luxembourg and the Netherlands, in a bid to hide his wealth and company funds over 100 billion won (US$89 million).

"I will give a full explanation (to the prosecution)," he told reporters at the Seoul Central District Prosecutors' Office, when asked whether the charges against him are true.

His son Sun Hyun-suk also appeared before prosecutors on Friday and Saturday for questioning about how he was able to purchase a luxury home in Beverly Hills, California worth some $2 million and was grilled over tax avoidance. (Yonhap News)