Shinwon chairman quizzed over tax evasion allegation

By Jhoo Dong-chan

Prosecutors questioned Shinwon Group Chairman Park Seong-cheol on Wednesday over his alleged tax evasion and embezzlement.

According to the Seoul Central District Prosecutors’ Office, Park allegedly bought the company’s shares using the names of his relatives and company officials to maintain his managerial control.

Prosecutors plan to seek an arrest warrant for him. They may summon him for once or twice more for more interrogation before the warrant request.

In 1999, Park gave up all his shares when the company was under a debt workout program.

Park, however, was able to control the group without holding any shares in Shinwon through a paper company set up under his wife’s name.

Park’s wife, Song Ki-jeong, established an advertisement company, named T&M Communications, in 2001, owning 26.6 percent of its shares. Park’s three sons also have 1 percent shares each.

Park allegedly purchased Shinwon’s shares through T&M Communications to evade taxes.

The National Tax Service (NTS) imposed 19 billion won ($1.7 million) in taxes on Song along with several Shinwon’s executives and referred the case to the prosecution.

Park is also suspected of embezzling 10 billion won in company fund and making a fake personal bankruptcy report to avoid paying debts worth 25 billion won.

The prosecution questioned him over how he purchased the shares and made the personal bankruptcy report.

Prosecutors raided Shinwon headquarters in western Seoul and Park’s house last week, seizing related documents and data.