Prosecutors said Wednesday they are looking into allegations that CJ CGV, South Korea's largest multiplex cinema chain, has evaded tens of millions of won in tax by manipulating its audience numbers since 2005, according to Yonhap News.
The leading cinema operator is accused of under-reporting profit by about 500 million won ($361,400) by reducing the number of audience members at a franchise theater in Gimhae, near Busan, by about 98,000 for two years beginning in March 2005, the prosecutors said.
Investigators have been looking into the theater chain's documents it confiscated from its headquarters in Seoul last November and have expanded the probe to include all 59 CGV cinemas nationwide.
CGV has denied any wrongdoing, claiming that the state-run Korean Film Council's "antiquated calculating system" was the cause of the discrepancy in its audience figures.