Former Taekwang Group Chairman Faces New Embezzlement Allegations
Investigation Launched into Former Taekwang Group Chairman
The Seoul Metropolitan Police Agency has begun an investigation into Lee Ho-jin, the former chairman of Taekwang Group. Authorities raided his residence and several affiliated businesses as part of a probe targeting potential embezzlement and breach of trust allegations. Taekwang Group, a mid-sized conglomerate with interests in petrochemicals and finance, is also under scrutiny.
Probe Extends to Central Seoul Office and Taekwang Country Club
The investigation is not limited to Lee and the Taekwang Group. It also encompasses the conglomerate’s central Seoul office and the Taekwang Country Club in Gyeonggi Province. The country club is facing allegations of unfair construction costs and subsidization for other subsidiaries.
Accusations of Slush Funds and Fraudulent Payments
Lee is accused of creating slush funds totaling 2 billion won ($1.48 million) through a scheme involving fraudulent double salary payments. The payments were made to executives who held simultaneous positions in different companies from 2015 to 2018. These actions have brought further legal trouble for Lee, who was previously released from a three-year prison term for similar offenses and tax evasion.
Reinstatement of Business Rights Despite Legal Troubles
Despite his legal woes, Lee had his business rights reinstated following a special presidential pardon on Liberation Day in August 2021. However, the current investigation highlights the ongoing issues surrounding Lee’s business practices and raises questions about the decision to reinstate his rights.
The former Taekwang Group chairman’s legal predicament underscores the need for accountability and transparency in corporate governance. It serves as a reminder that even individuals in positions of power should be held responsible for their actions. The investigation into Lee and Taekwang Group sends a strong message that embezzlement and breach of trust will not go unnoticed or unpunished in South Korea’s business landscape.
It is essential for the authorities to thoroughly examine all aspects of the case, ensuring a fair and impartial investigation. This process will help maintain public trust in the justice system and send a clear signal that white-collar crimes will face consequences.
