Prosecutors raid Hyosung Group HQ for suspected slush fund

Prosecutors said Friday they raided the main headquarters of South Korean conglomerate Hyosung Group in western Seoul over alleged management of secret funds through their affiliates.

Investigators from the Seoul Central District Prosecutors Office also searched four of its affiliated firms and the residences of four officials suspected of involvement to seize evidence, they said.

The raid came as part of a probe into allegations that Hyosung, the 25th-largest family-controlled conglomerate here, has been running slush funds for former chairman Cho Suck-rai and his eldest son and the group's current head Hyun-joon, through its affiliated companies.

Prosecutors have been investigating top officials of Hyosung including the two over suspected embezzlement and breach of duty, after Cho's younger son, Hyun-moon, filed a complaint with the prosecution seeking a probe against his father and older brother.

Hyosung's businesses stretch out from textile, chemical and trading to heavy industries and construction. (Yonhap)