Cousin of LG Group Chairman Arrested
By Kim Tae-jong
Staff Reporter
The court issued an arrest warrant Saturday for Koo Bon-ho, the largest shareholder of Red Cap Tour and a cousin of the LG Group Chairman Koo Bon-moo.
Koo has been questioned over allegations that he reaped more than 200 billion won ($200 million) in stock investment gains between 2006 and 2007 after spreading false rumors and using insider information on some Kosdaq-listed firms.
He has denied the allegation, saying he was simply ``lucky'' and that people rushed to buy stocks that he bought, which helped increase their value, as they were influenced by his previous successful investments, according to a prosecutor.
Koo is also being investigated over his connections to arms dealer Cho Poong-eon, who allegedly bribed government officials in an effort to prevent Daewoo Group from going bankrupt and to keep former Daewoo Chairman Kim Woo-choong out of jail.
Prosecutors are also questioning some family members of other chaebol owners on suspicions that they were involved in inflating stock prices to the detriment of retail investors through collusion with insiders at Kosdaq-listed firms.