[THE INVESTOR] Cho Yang-ho, chairman of Hanjin Group and Korean Air, is facing a criminal investigation over an allegation that he used company funds on his home remodeling.
The National Police Agency said on Aug. 18 that they told the tycoon to appear for questioning on Aug. 24, and his spouse Lee Myung-hee the next day, on possible charges of breach of trust.
Police suspect that at least 3 billion won ($2.63 million) of the company’s funds, set aside for the construction of a hotel, was illicitly channeled into renovating Cho’s private resident in Seoul between 2013 and 2014.
“Cho has been given a subpoena this afternoon (Aug. 18), and will cooperate fully with the questioning,” an official from Korean Air told The Korea Herald.
Last month, police investigators raided the headquarters of Korean Air in western Seoul to collect accounting books and contract documents regarding the alleged misappropriation of the company funds.
By Bak Se-hwan/The Korea Herald (email@example.com)