Ex-Lotte Chemical exec indicted on alleged tax evasion

[THE INVESTOR] A former Lotte Chemical finance executive has been indicted on charges of tax fraud on July 8. The suspect, identified by the surname Kim, is the first individual to be indicted since the probe into Lotte Group began early last month.

The investigators are reported to be focusing on whether Lotte Group chairman Shin Dong-bin was aware of the alleged wrongdoings as he was serving as Lotte Chemical CEO at the time. 

Kim is suspected of having been involved in the process of Lotte Chemical receiving 27 billion won (US$ 23.4 million) tax refund based on false data between 2006 and 2008.

At the time, Lotte Chemical filed an administrative suit requesting the depreciation of its fixed assets to be reflected in the taxation process. The prosecution suspects that Lotte Chemical officials behind the suit were fully aware that the fixed asset of 151.2 billion won recorded in the books was false.

By Choi He-suk (cheesuk@heraldcorp.com)