Some executives of CJ Group attempted to destroy evidence ahead of a prosecution raid over the food and entertainment conglomerate's alleged creation of a slush fund, a prosecution official said Monday.
Two weeks ago, a team of prosecutors and investigators raided the headquarters and offices of CJ and the houses of several executives to collect evidence of suspicions that it had created an overseas slush fund worth 7 billion won ($6.2 million) and brought the money into the country.
The group has also been accused of committing other illegal acts such as tax evasion and stashing funds under borrowed-name bank accounts.
"There are suspicions that several executives of CJ Group systemically hid or destroyed evidence," the official said, adding that they have been warned of the alleged behavior.
Destruction or concealment of evidence carries a maximum five years in prison or a fine of between 7 million won and 10 million won.
In addition, the executives have repeatedly snubbed the prosecution's summons to appear for questioning, citing doubtful reasons such as health problems, the official added.
Late last month, the prosecution office told several executives of the group, including its subsidiary CJ Cheiljedang Corp.'s chairman only identified by his surname Kim, to appear for questioning.
The executives have been renotified to appear for questioning sometime this week, the official said, adding that prosecutors are reviewing requesting arrest warrants if they continue to refuse the prosecution's call.
CJ Group has hired the country's two biggest law firms, Kim & Chang and Lee & Ko.
Earlier in the day, the head of the group said he will take all responsibility for the allegations.
"I apologize for the group's slush fund allegation, which has hurt the group's pride," Lee Jae-hyun, chairman of CJ Group, said in an email to employees. "The faults of other executives are also my responsibility. The group should not be swayed by the prosecution probe." (Yonhap News)
