“I am sorry for causing trouble with a family problem. I will be sincere during the questioning,” Cho told reporters after arriving at the Seoul Central District Prosecutors’ Office, referring to the fact that the allegations against him grew out of a feud with his brothers over control of Korea’s 25th largest conglomerate. Cho is accused of creating a slush fund worth about 10 billion won (US$9.42 million) from 2010-2015 by having Hyosung purchase construction materials through a paper company established by one of his close aides. Investigators are also looking into suspicions that Cho had Hyosung provide tens of billions of won to an ailing affiliate in which he has a stake, embezzled company money through trading art works, and created a slush fund overseas in the form of sending billions of won to a paper consulting firm in Hong Kong. He is also suspected of putting four women, including a beauty pageant winner-turned-actress, on the company payroll even though they were never actually employed. The allegations against him were raised after Cho’s younger son, Hyun-moon, filed dozens of complaints with the prosecution seeking an investigation into the elder brother since July 2014. Cho and his two brothers have been embroiled in a family feud over the leadership succession. Hyosung’s businesses stretch from textiles, chemicals and trading to heavy industries and construction. Yonhap.
Lotte is known as a giant retailer that entered Vietnam in 2014. It is also the investor of a 65-storey building in Hanoi, which consists of a 5-star hotel, a business center, residences and offices for rent.For the US$400 million project, Lotte Asset Development, the group's real estate investment arm, bought Coralis, a special purpose company based in Luxembourg, for US$60.2 million. Luxembourg is known as one of the world's major tax havens.Lotte Shopping and Hotel Lotte, two major affiliates of Lotte Group, each bought a 45% stake, lowering Lotte Asset Development's ownership to 10%.But Coralis logged a net loss…... [read more]
Lotte Engineering & Construction Co., a construction unit under the retail giant, in 2014 built a 65-story skyscraper in the Vietnamese capital of Hanoi, which also involves a five-star hotel, a department store, residences and offices. For the $400 million project, Lotte Asset Development, the group's real estate investment arm, bought Coralis, a special purpose company based in Luxembourg, for 69.7 billion won ($60.2 million). Luxembourg is known as one of the world's major tax havens. Later, Lotte Shopping and Hotel Lotte, two major affiliates of Lotte Group, each bought a 45 percent stake, lowering Lotte Asset Development's ownership to…... [read more]
Can Tho City People’s Procuracy has dismissed the ‘slush fund’ case against Tran Ngoc Suong, former head of the Song Hau Farm, according to a recent decision. Under the provision of the Decision No.25 signed by Ho Thanh Long, head of Can Tho City People’s Procuracy, any activities of the proceedings against the defendant who has previously been allegedly “setting up an illegal fund will also be dismissed from the date of signing, January 17. Considering historical circumstances of the fund establishment and the extenuating circumstances, including the contribution of Tran Ngoc Suong, nicknamed Ba Suong, and her family to…... [read more]
Prosecutors in a southern Vietnamese city Thursday dropped charges of establishing a slush fund against the former director of a state-owned farm because of the contributions made by her and her family to the state. The Can Tho prosecutor's office had earlier charged Tran Ngoc Suong with setting up an illegal fund of VND9 billion (US$432,000 at current rates) in 2001 at Song Hau Farm, a collective. Suong had been named a "Labor Hero" by the government in 2000. The same charges have also been dropped against four former collective officials -- deputy director Truong Hong Nhung, chief accountant Dang…... [read more]
A senior Hanoi sports official, under the scanner for setting up an unauthorized fund and other offences, has admitted to the existence of the fund though denying there is anything illegal involved. Pham Danh Ton, deputy director of the central Sports Training Center No 1, claimed the "life support fund" - which does not appear in the books - was for the general good. It had been in existence for decades and was meant for distribution of money to the center's employees on occasions like the New Year and National Day. But the fund had been wound up two months…... [read more]
