Prosecution indicts Hanwha chairman for embezzlement

The prosecution on Sunday indicted Kim Seung-yeon, chairman of Hanwha Group, on suspicion of embezzlement and misappropriation that it said have caused large damage to the business conglomerate.

   The indictment wrapped up the prosecution's 137-day probe into allegations that Kim kept tens of billions of won in slush funds to evade taxes.

   Also on the list of the prosecutors' indictment are 10 Hanwha officials, including a former chief financial officer of the group, suspected of aiding and assisting the group chairman in his alleged wrongdoings.

   Kim, 59, is suspected of embezzling some 320 billion won

(US$287 million) from the group to pay off debts of group affiliates.

   He is also suspected of inflicting 104 billion won in damages to the group by selling shares of its business affiliates to his older sister and three sons at lower than market price and keeping over 100 billion won in slush funds stashed in over 380 false bank accounts to evade taxes, according to prosecutors.

   "The damages to Hanwha (group) due to such illegal activities amount to as much as 646.6 billion won," a prosecutor said, asking not to be identified.

   The prosecution also hinted that additional people may be indicted in the case that has led to an abrupt resignation of the chief prosecutor at the prosecution office in charge of the probe on Hanwha, the country's 10th-largest conglomerate.

   Nam Ki-choon, head of the Seoul Western Prosecutors' Office, offered to step down last week, raising questions about reasons for his resignation amid the ongoing probe into the Hanwha scandal.

   "Hanwha continuously tried to obstruct the investigation and destroy evidence by hiding its documents at a makeshift shelter in a mountain and forcing its officials to make false testimonies," a prosecution official said.

   "The prosecution will continue to investigate and indict those responsible for obstruction of justice," the official added. (Yonhap News)