By Na Jeong-ju
Choi Yong-kwon, CEO of the mid-sized construction firm, Samwhan Corp., is being investigated over allegations he operated a slush fund worth 450 billion won ($421 million), the prosecution said Tuesday.
The probe is based on a complaint filed by Choi's younger sister, who is involved in a feud over inheritance with her brother following the death of their father, Choi Jong-hwan, in September 2012.
The sister, whose name was withheld, is currently staying in the United States, the prosecution said. She has never engaged in management of the company.
According to the complaint, Samwhan created a slush fund in the 1980s using its affiliate in the U.S. The firm then bought properties in Hawaii and elsewhere in the U.S. with the money.
Choi's sister has claimed her brother is operating a slush fund worth 450 billion won and has hidden assets overseas.
Choi has denied the allegations, the prosecution said.
"We are conducting an investigation into her claims. The focus will be on whether he has siphoned off his personal assets and company funds overseas," a prosecutor told reporters.
Choi is currently facing an appeals trial in connection with a separate case.
In April, Choi was found guilty of engaging in illegal inter-subsidiary transactions, as well as breach of trust charges. A district court sentenced him to three years in prison, with the jail term suspended for four years.
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| Choi Yong-kwon |
The probe is based on a complaint filed by Choi's younger sister, who is involved in a feud over inheritance with her brother following the death of their father, Choi Jong-hwan, in September 2012.
The sister, whose name was withheld, is currently staying in the United States, the prosecution said. She has never engaged in management of the company.
According to the complaint, Samwhan created a slush fund in the 1980s using its affiliate in the U.S. The firm then bought properties in Hawaii and elsewhere in the U.S. with the money.
Choi's sister has claimed her brother is operating a slush fund worth 450 billion won and has hidden assets overseas.
Choi has denied the allegations, the prosecution said.
"We are conducting an investigation into her claims. The focus will be on whether he has siphoned off his personal assets and company funds overseas," a prosecutor told reporters.
Choi is currently facing an appeals trial in connection with a separate case.
In April, Choi was found guilty of engaging in illegal inter-subsidiary transactions, as well as breach of trust charges. A district court sentenced him to three years in prison, with the jail term suspended for four years.
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