The Seoul Metropolitan Police Agency has initiated an investigation into former Taekwang Group Chairman Lee Ho-jin, with a raid conducted on his residence and several affiliated businesses. The probe targets potential embezzlement and breach of trust allegations against Lee and the mid-sized conglomerate Taekwang, which has interests in petrochemicals and finance.
The investigation extends to the group's central Seoul office and the implicated Taekwang Country Club in Gyeonggi Province. The country club faces allegations of unfair construction costs and subsidization for other subsidiaries.
Lee is accused of creating slush funds amounting to 2 billion won ($1.48 million) through a scheme involving fraudulent double salary payments to executives holding simultaneous positions in different companies from 2015 to 2018.
The investigations follow Lee's release in October after serving a three-year prison term for similar offenses and tax evasion. Despite his legal troubles, Lee had his business rights reinstated following a special presidential pardon on Liberation Day in August 2021. His current legal predicament underscores the persistent issues surrounding his business practices.
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