Korean Air chief grilled over suspected tax evasion

Hanjin Group Chairman Cho Yang-ho bows to the public in an apology before he goes into the prosecution office in southern Seoul for questioning over alleged embezzlement, tax evasion and breach of trust on June 28. Korea Times photo by Choi Won-suk

Korean Air Lines Chairman Cho Yang-ho appeared Thursday for prosecution questioning over allegations of tax evasion, breach of trust and embezzlement.

Cho, 69, appeared at the Seoul Southern District Prosecutors' Office at around 9:30 a.m.

"I am sorry. I will faithfully face the investigation," he told reporters.

He and his sister allegedly evaded over 50 billion won ($44.7 million) in taxes on their inheritance of overseas assets from their father and founder of the Hanjin Group, which includes Korean Air. Cho chairs the group.

Prosecutors also suspect he has embezzled over 20 billion won from company funds and caused losses to the business group by unfairly awarding contracts to companies controlled by his family members.

His wife and children are also being probed over alleged assaults, smuggling and illegal hiring of foreign housekeepers. (Yonhap)