Investigation into Hyosung Group's Alleged Tax Evasion Continues

The weight of tax evasion allegations being piled atop Hyosung Group continues to add up. Prosecutors say they've uncovered new evidence that implicates one of Chairman Cho Suck-rai's right-hand men, and they're expected to call in key officials for questioning in the coming days. Our Song Ji-sun has the latest. Following a raid on Hyosung Group's headquarters last week, the Seoul Central District Prosecutors' Office are expected to summon key company officials and the group's owner in the coming days. Korea's tax agency previously filed charges against the group's chairman, Cho Suck-rai for orchestrating a tax evasion scheme through various illegal means. The family-owned conglomerate allegedly evaded corporate taxes worth 1 trillion won, or about 900 million U.S. dollars for a period of 10 years following the Asian financial crisis in 1997. through accounting fraud. Cho himself is also accused of holding shares under borrowed names to evade transfer and income taxes totaling more than 90 million dollars. Along with computer hard drives and documents, including accounting books prosecutors say they found a USB drive with evidence of accounting fraud linked to a Hyosung Group executive, identified only by his surname Koh. Koh, who is suspected of playing a key role in managing the assets of Chairman Cho and his family. is also expected to be summoned for questioning sometime soon. The tax office has already placed travel bans on Cho and Koh, along with Hyosung Group Vice Chairman Lee Sang-woon. Hyosung Group, the country's 26th-largest conglomerate does business mainly in the fields of energy and heavy industry and holds more than 10 billion dollars in assets. Song Ji-sun, Arirang News.