The chief of CJ Group, a local food and entertainment conglomerate, will be summoned over suspicions that he created massive secret funds and evaded taxes in the process, prosecutors said Monday.

Chairman Lee Jae-hyun has been notified to show up for questioning at the Seoul Central District Prosecutors' Office in southern Seoul between 9 a.m. and 10 a.m. Tuesday, they said.

Prosecutors suspect that Lee evaded 51 billion won ($44.5 million) in taxes by stashing secret funds offshore. Lee also allegedly misappropriated 60 billion won in company funds.

The country's 10th richest man is additionally accused of misappropriating another 35 billion won in company funds by fraudulently purchasing two buildings in Tokyo, they added.

Lee will be intensively questioned over his alleged illegalities until late Tuesday night, prosecutors said, adding that they are mulling over requesting an arrest warrant against him.

"A decision (whether to seek an arrest warrant for Lee) has not yet been fixed," a prosecution official close to the investigation said, adding the decision will be made depending on the outcome of Tuesday's questioning.

Since raiding the group's headquarters on May 21, the prosecution has been zeroing in on the chairman and his family for their alleged creation of illegal funds for personal use and tax evasion.

The investigators have been gathering data from concerned organizations, including the Seoul tax office and the Korea Exchange, to track down irregularities regarding CJ shares.

Prosecutors believe that Lee hid massive assets in overseas accounts to purchase shares of his companies to increase his stakes in CJ Group and also stashed millions of dollars in secret funds by using fake deals on expensive art pieces.

The prosecutors reportedly found evidence that dozens of the group's executives had purchased up to 300 pieces of art since 2005. They are now looking into whether Lee used the names of the company's executives.

Hong Song-won, head of Gallery Seomi, was twice summoned by prosecutors last week to face questioning over suspicions that she had assisted Lee in stashing funds by inflating the costs or forging papers in the purchase of the artwork.

Among the items are high-value pieces by leading contemporary artists such as Andy Warhol and Jeff Koons, prosecutors said.

It is not the first time the tycoon has been accused of various wrongdoings.

In 2008, police revealed that Lee had secretly managed large funds under borrowed-name bank accounts and ordered him to pay 170 billion won in taxes. However, the National Tax Service did not file a criminal complaint against the company at the time.

CJ Group claimed its chairman had inherited the funds from his grandfather and the founder of Samsung Group, Lee Byung-chull, and the group had paid the 170 billion won in taxes.

Lee Jay-hyun is the eldest son of Lee Maeng-hee, who is the elder brother of Lee Kun-hee, chairman of Samsung Electronics Co.

Meanwhile, the vice president of CJ Global Holdings, identified only by his family name of Shin, is to be indicted and put under arrest on Wednesday, prosecutors said.

Shin, who has been accused of playing a key role in managing massive slush funds for Lee, will be charged with his alleged involvement in criminal activities, including embezzlement, tax fraud and dereliction of duty, they said. (Yonhap News)