Prosecutors searched the house of Taekwang Group's owner on Saturday to investigate into allegations that he has been involved in illegal stock trading to evade inheritance taxes for a father-to-son transfer of ownership, Yonhap News Agency said.
Investigators raided the house as well as his office in central Seoul to confiscate internal documents and computer files related to the stock deals, Yonhap said, citing officials from the Seoul Western Prosecutors' Office.
The group's president, Lee Ho-jin, 48, has been charged with issuing shares at low prices to pave the way for his 16-year-old son to take control of the company without paying inheritance taxes in the future, it said.
Lee is also suspected of raising slush funds and giving the money to political heavyweights in return for business favors, the report said.
Taekwang Group is a large conglomerate with 52 affiliates whose businesses range from petrochemical, textile and finance to media and entertainment.