Ex-Kolon Group chief to stand trial over 'unreported shares in borrowed accounts'
By Park Si-soo
Lee Woong-yeul, former chairman of Kolon Group, will stand trial for allegedly stashing “hundreds of thousands of shares” in accounts registered under others' names in violation of multiple financial laws, according to reports.
said Thursday the Seoul Central Prosecutors' Office recently indicted Lee, 63, on violation of the Financial Market Act and the Real-name Financial Transaction Act.
The allegedly concealed shares are believed to be an unreported gift from his late father, Lee Dong-chan, which should have been subject to inheritance tax, according to Newsis.
A key charge raised against him is an alleged false declaration of shares in his possession. Prosecutors didn't charge him with tax evasion, citing the Supreme Court's past ruling that the act of having shares in borrowed accounts itself is not unlawful.
The prosecution began an investigation into the tycoon after receiving tips from the National Tax Agency that audited the company in 2016.
Meanwhile, Lee stepped down as the group's chief in January after leading it for 23 years.