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(LEAD) Arrest warrant sought for Korean Air chief on tax evasion, embezzlement charges

All News 14:21 July 02, 2018

(ATTN: ADDS more details in paras 3-4 and photo)

SEOUL, July 2 (Yonhap) -- Prosecutors sought an arrest warrant for Korean Air Lines Co. Chairman Cho Yang-ho on Monday on charges of tax evasion and embezzlement.

Cho, 69, has been under investigation over suspicion that he dodged over 50 billion won (US$45 million) worth of inheritance tax and embezzled some 20 billion won from company funds by unfairly awarding business contracts to companies controlled by his family.

The head of South Korea's national flag carrier is also accused of pocketing ill-gotten profits from running an illegal pharmacy and paying lawyer fees for his family with company funds.

He faces charges of embezzlement, breach of trust, fraud and violating laws regarding taxes and pharmaceutical affairs, prosecutors said.

He was questioned by prosecutors last Thursday.

The request for Cho's arrest comes less than two weeks after his wife, Lee Myung-hee, avoided arrest for a second time as a court twice declined to issue her writs for multiple assaults of employees and illegal hiring of foreign housekeepers.

Cho's two daughters have also undergone probes by law enforcement in recent months on charges that are similar to their mother's, including the eldest heiress, Hyun-ah, who's also famous for the 'nut rage' incident.

Hanjin Group Chairman Cho Yang-ho leaves the Seoul Southern District Prosecutors' Office on June 29, 2018, after undergoing an interrogation over tax evasion and embezzlement allegations. (Yonhap)


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