SEOUL, Sept. 11 (Yonhap) -- A Seoul court is expected to decide whether to arrest the operator of a private equity fund the justice minister's family had invested in as part of a widening probe over corruption allegations surrounding the minister.
Justice Minister Cho Kuk, who was appointed Monday following a heated debate over allegations of his daughter's education and family fund investment, still faces an ongoing probe regarding his family.
On Wednesday, the Seoul Central District Court held a hearing over the arrest warrant the prosecution has filed against the chief of the private equity firm Co-Link Private Equity and the head of local firm Wealth C&T, identified only as Choi, which received funding from Co-Link PE.
Lee Sang-hoon, the head of Co-Link PE, is suspected of embezzlement and destruction of evidence, as well as having exaggerated the amount of the investment fund he received from Cho's family.
The Co-Link PE chief is also alleged of falsely reporting to the financial regulator that the fund received 7.4 billion won (US$6.2 million) from Cho's family for investment, while the pledged amount was 1.05 billion won.
Choi is suspected of having embezzled about 1 billion won in company money.
The private equity fund came into the spotlight on doubts that Wealth C&T, which Co-Link PE invested roughly 1.4 billion won in, saw its sales rise while Cho was serving as senior presidential secretary for civil affairs.
The justice minister has denied allegations that his family intervened in the investment. He has also announced that he will not take part in the ongoing probe and that he anticipates it to proceed under fair circumstances.
The justice minister oversees the prosecution in terms of human resources and administration.
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