Prosecutors expand Taekwang probe
Group suspected of having bribed financial regulators, tax officials By Lee Hyo-sik The prosecution is expanding its probe into Taekwang Group to secure evidence that it created tens of billions of won in a slush fund by raiding the nation’s top tax office. The Seoul Western District Prosecutors’ Office sent a group of investigators Monday afternoon to the Seoul Regional Tax Office to confiscate computer hard disks and other tax-related documents concerning Korea’s 40th largest conglomerate. Prosecutors are looking into allegations that the tax office was lobbied by the scandal-ridden business group in early 2008 when it imposed nearly 100 billion won in inheritance taxes on Taekwang after discovering large sums of unclaimed funds at its subsidiaries. At the time, tax officials launched a tax audit into Taekwang Industrial, Goryo Savings Bank and group Chairman Lee Ho-jin on suspicions of having a slush fund. They levied taxes on Taekwang but did not refer the case to the prosecution for criminal investigation, saying the group and Lee did not evade paying taxes o
