CJ chief's home raided

People walk in front of the house of CJ Group Chairman Lee Jay-hyun located in Jangchung-dong, Jung-gu, Seoul as prosecutors search the property, Wednesday. / Yonhap

By Bahk Eun-ji

Prosecutors raided the home of CJ Group Chairman Lee Jay-hyun, Wednesday, who is suspected of having created a slush fund, evaded taxes and manipulated stock prices.

Lee allegedly hid 400 billion won abroad and manipulated the group’s affiliates’ share prices. Around 10 investigators entered the house in Jangchung-dong, central Seoul to secure documents and computer hard disks.

The seizure came after the prosecutors raided the company headquarters on May 21. They are focusing their investigation on assets hidden by Lee in “borrowed” name accounts dating back to 2008.

Earlier in the day, prosecutors also raided the headquarters of Shinhan Bank to trace the 24 billion won that the bank’s Tokyo branch loaned to a CJ Group overseas affiliate.

Lee was banned from leaving the country earlier this month along with six executives of the group. The head of the nation’s 14th largest conglomerate is suspected of tax evasion and holding a slush fund in the British Virgin Islands, Hong Kong and Switzerland.

Lee is the eldest son of Lee Maeng-hee, the elder brother of Lee Kun-hee, chairman of the Samsung Group.