Hyosung Group Chairman Cho Hyun-joon appeared at prosecutors' office for questioning Wednesday about suspicions that he siphoned off company money to create a slush fund and engaged in other irregularities.
"I am sorry for causing trouble with a family problem. I will be sincere during the questioning," Cho told reporters after arriving at the Seoul Central District Prosecutors' Office, referring to the fact that the allegations against him grew out of a feud with his brothers over control of Korea's 25th largest conglomerate.
Cho is accused of creating a slush fund worth about 10 billion won ($9.42 million) from 2010-2015 by having Hyosung purchase construction materials through a paper company established by one of his close aides.
|Hyosung Group Chairman Cho Hyun-joon speaks to reporters after arriving at the Seoul Central District Prosecutors` Office for questioning on Jan. 17, 2018. (Yonhap)|
Investigators are also looking into suspicions that Cho had Hyosung provide tens of billions of won to an ailing affiliate in which he has a stake, embezzled company money through trading art works, and created a slush fund overseas in the form of sending billions of won to a paper consulting firm in Hong Kong.
He is also suspected of putting four women, including a beauty pageant winner-turned-actress, on the company payroll even though they were never actually employed.
The allegations against him were raised after Cho's younger son, Hyun-moon, filed dozens of complaints with the prosecution seeking an investigation into the elder brother since July 2014. Cho and his two brothers have been embroiled in a family feud over the leadership succession.
Hyosung's businesses stretch from textiles, chemicals and trading to heavy industries and construction. (Yonhap)