Alphabiz - Former Taekwang Group Chairman Indicted Without Detention Over KRW 3.1 Billion Embezzlement Allegations

Photo courtesy of Yonhap News

[Alpha Biz= Paul Lee] Former chairman Lee Ho-jin of Taekwang Group has been indicted without detention on charges of embezzlement and breach of trust involving approximately KRW 3.1 billion.

According to the legal community on May 12, the Seoul Central District Prosecutors’ Office’s Criminal Division 3 indicted Lee and former management council chairman Kim Ki-yu on May 8.

Lee is accused of orchestrating a scheme in which group affiliates issued fictitious salary payments to employees’ accounts and then diverted the funds. Prosecutors allege that he used this method to create slush funds and embezzle company money totaling about KRW 3.1 billion.

He is also suspected of having Taekwang Country Club cover construction costs of approximately KRW 600 million for a golf practice facility and of using around KRW 80 million from corporate credit cards for personal purposes.

The case was initially forwarded to prosecutors by police in September 2024 following an investigation into the allegations.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)