Home »Company News » World » SK Group head held over embezzlement

The chairman of South Korea's fourth largest conglomerate, SK Group, has been arrested on charges of embezzlement and tax evasion, a court official said on Saturday.

Son Kil-seung was accused of diverting 788 billion won ($667.2 million) from SK Shipping's coffers for failed investment in overseas futures, granting 249 billion won in illicit aid to an SK Group unit and masterminding a 38.2 billion won tax evasion, the Seoul District Court official said.

The official, citing Son's arrest warrant, said he was arrested late on Friday.

Officials from the energy and telecommunications conglomerate were not immediately available for comment.

South Korean officials have said they are determined to weed out business malpractices and strengthen corporate transparency.

Prosecutors will continue an investigation into allegations that Son provided funds to politicians ahead of a 2002 presidential election, the official said.

On Friday, veteran lawmaker Chyung Dai-chul, who had managed President Roh Moo-hyun's victorious election campaign, was also arrested on bribery and illegal campaign financing charges.

Son is a well-known figure in the country's business circles and was the head of a powerful business lobby group.

Last June, Son was sentenced to a suspended three-year jail term in a separate accounting fraud scandal involving trading firm SK Networks, formerly known as SK Global Co.

Copyright Reuters, 2004


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