CJ Group Owner Held for Embezzlement, Tax Evasion

      July 02, 2013 11:17

      The head of food and entertainment conglomerate CJ Group was arrested on Monday night on charges of evading tens of billions of won in taxes, embezzling corporate funds and breach of trust.

      A judge at the Seoul Central District Court said he authorized the detention of CJ chairman Lee Jay-hyun due to fears he may destroy evidence and evade arrest.

      Prosecutors filed for an arrest warrant against Lee on June 25 after questioning him for 11 hours. The investigation began with a police raid on CJ Group headquarters on May 21.

      Lee faces three broad charges: evading W50-60 billion in taxes by setting up a shell company overseas; buying and selling art works and using bank accounts under false names; and embezzling around W90 billion from his company and causing W50 billion in losses to CJ Group by pledging one of the company's buildings as collateral for a personal debt.

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