Ex-Lotte Chemical chief summoned over accounting fraud allegations

Published : Jul 19, 2016 - 16:02 Updated : Jul 19, 2016 - 16:03

[THE INVESTOR] Ki Joon, a former chief of Lotte Chemical was summoned by prosecutors Tuesday to be questioned on accounting fraud allegations.

Ki Joon appeared before the Seoul Central District Prosecutors’ Office as a suspect.

Former chief of Lotte Chemical Ki Joon (Park Hyun-koo/The Korea Herald)

“I will tell all the facts,” he told reporters before entering the prosecutors’ office.

KP Chemical, the precursor of Lotte Chemical, is suspected of using doctored accounting records when filing a suit against the government in 2006 to receive some 27 billion won ($24 million) of illegal tax refunds.

Prosecutors said they will question Ki over whether he was involved in accountancy fraud and whether Lotte Group chairman Shin Dong-bin took part in the alleged scheme.

The country’s fifth-largest conglomerate has been under investigation since June this year for corporate irregularities. At the same time, the group is suffering from a power struggle between the chairman and his older brother Shin Dong-joo.

By Park Yu-na (yunapark@heraldcorp.com)