SK Group Units Fall After Chairman Questioned by Prosecutors

SK Holdings Co. (003600) and other SK Group affiliates fell in Seoul trading after SK Group Chairman Chey Tae Won was questioned by prosecutors over allegations he misappropriated company funds.

Chey was questioned today at the prosecutors’ office headquarters in Seoul over the allegations, SK Group said in an e-mailed response to questions from Bloomberg News. YTN television earlier reported that Chey was questioned by prosecutors. The prosecutors’ office declined to comment.

SK Holdings, the de facto holding company for the group, declined 5.7 percent to 124,000 won as of 11:29 a.m. on the Korea Exchange, headed for the lowest close since Oct. 6. SK Innovation Co. (096770), the group’s refinery unit, dropped 4 percent to 143,000 won, headed for the lowest close since Oct. 10. SK Chemicals Co. was down 2.2 percent to 61,600 won, the lowest since April 13.

Chey apologized for “the publicity of his personal issue” and will do his best “to address the suspicions and misunderstanding,” SK Group said, citing his remarks at the prosecutors’ office in the morning.

Chey Jae Won, who is SK Holdings’ vice chairman and the younger brother of Chey Tae Won, was questioned by the prosecutors’ office on Dec. 1 over allegations that he misappropriated 99.2 billion won ($84 million) from SK affiliates to make up for investment losses incurred by his elder brother, Yonhap reported on Dec. 1. The younger Chey has been cooperating with prosecutors over the investigations, group spokesman Lim Su Kil said at that time.

To contact the reporters on this story: Sangim Han in Seoul at sihan@bloomberg.net; Seyoon Kim in Seoul at skim7@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

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