Input 2021.03.05 15:31
The Seoul Central District Prosecutor’s Office (Chief Prosecutor Jun-cheol Jeon) announced on the 5th that as a result of the investigation into the embezzlement case of Chairman Choi, it was arrested on charges of violating the law (embezzlement) regarding aggravated punishment for specific economic crimes.
Chairman Choi has 11 criminal charges. First of all, the prosecution believes that in April 2009, Chairman Choi lent (resigned) SK Telesys funds 15.5 billion won to a private company that is pursuing a private golf course development project without collateral. In addition, in September 2012, SK Telesys withdrew 16.4 billion won without accounting, and used it as a paid-in capital increase (embezzlement) by Chairman Choi to SK Telesys.
In October 2012, SK Telesys issued a BW of 27.5 billion won, and as if Chairman Choi paid for the increase with personal funds in the case of a second paid-in capital increase, he tricked a new growth engine fund to acquire BW of 27.5 billion won (fraud, capital market). Violation of the law), and from November 2012 to July 2013, he is also accused of embezzling SK Telesys funds of KRW 11.6 billion for private purposes such as personal capital gains tax and expenses related to stock mortgage loans.
SK Telesys decided to receive a capital increase from SKC, which was run by Chairman Choi, as the bankruptcy crisis, and refused the SKC Board of Directors’ request for disclosure of accounting data and conduct of management discussions, and allowed SKC to fund 3×36 billion won worth of funds. There is also a charge (alignment) of capital increase to SK Telesys. It was also stated as a prosecution that SKC issued (allocated) a Debt Liability Agreement (LOC) that was responsible for guaranteeing SK Telesys’ loan debt of 30 billion won on two occasions without the resolution of the SKC board of directors.
In addition, in August 2018, when there was a situation where it was necessary to repay the funds raised for the private golf course business, the company he was actually operating was forced to pay 26 billion won worth of personal debt instead.From March 2003 to November 2020 Up until now, family members and relatives are also accused of receiving a salary of 23.2 billion won (embezzlement) as an employee of six companies, including SK Networks, a listed company.
The 7.2 billion won for hotel villas owned by SK Networks, which were personally used by Chairman Choi and the family of Chairman Choi, were also paid for by SK Networks, SKC, and SK Telesys, and about 1.6 billion won (158 times) was borrowed in the name of the employee to avoid reporting regulations. There are also charges of violating the Real Name Financial Law by exchanging money. He is also accused of violating the Foreign Exchange Transaction Act by leaving the country with 900 million won (17 times) in foreign currency without reporting.
In the six companies, the amount of money stolen by Chairman Choi for embezzlement and dismissal amounted to 223.5 billion won.
The prosecution plans to continue investigating Chairman Choi and related persons in addition to the 11 cases of prosecution that were prosecuted. An official at the prosecution said, “We will continue to investigate charges that are not included in the prosecution on this day.”
Earlier, the prosecution conducted a seizure and search of the SK Group headquarters office in Seorin-dong, Jongno-gu, Seoul. This seizure search was also conducted as a complementary investigation against Chairman Shin-won Shin. SK Group chairman Choi Tae-won has confirmed that the prosecution is not included in the subject of the seizure and search for this time or the subject of filing.