Seoul prosecutors indicted the head of CJ Group, a South Korean food and entertainment group, for tax evasion and embezzlement as part of a government drive to crack down on corporate crime.
Lee Jay Hyun, the 53-year-old chairman of the group, was charged today after an investigation that started in May, according to the prosecutors. The group is the country’s 14th-largest chaebol, the conglomerates that dominate South Korea’s economy.
President Park Geun Hye pledged to crack down on tax evasion to help fund increased welfare spending and the country’s tax agency began 23 separate investigations in May. The government has targeted the heads of chaebol for tax evasion and embezzlement in previous years, including Samsung Group and Hyundai Group, the country’s two biggest.
Lee avoided 54.6 billion won ($49 million) in taxes and misappropriated 96.3 billion won in company assets, the Seoul Central District Prosecutors’ Office said in a statement today. Lee had used a CJ Group unit to provide collateral and guarantees for property purchases in Japan, according to the statement.