The late, Shin-won Shin, chairman of SK Networks, prosecuted arrest… SK headquarters seizure and search map

The Seoul Central District Prosecutor’s Office, Department of Anti-Corruption Investigation 1 (Director Prosecutor Jun-cheol Jeon), announced on the 5th that it had arrested Shin-won Shin (68), chairman of SK Networks, on charges of embezzlement under the Act on aggravated punishment for specific economic crimes.

Chairman Choi is 2235 from six companies he operates, including SK Networks, SKC, and SK Telesys, in the name of promoting personal golf course business, providing false pay to family and relatives, paying for personal capital increase, and providing funding for insolvent affiliates. They are accused of embezzlement or appointment worth KRW billion.

The prosecution estimates that in April 2009, Chairman Choi lent (assigned) SK Telesys funds 15.5 billion won to a private company that is pursuing a private golf course development project without collateral. In addition, in September 2012, SK Telesys withdrew 16.4 billion won of funds without accounting treatment and used the charges for the capital increase (embezzlement) of Chairman Choi’s individual against SK Telesys.

The prosecution believes that Chairman Choi has also violate the laws on the capital market and financial investment business by issuing BW (BW) worth 27.5 billion won in a way to deceive a new growth engine fund in the process of raising funds for insolvent affiliates. In October 2012, when SK Telesys issued bonds with underwriting rights, it tricked a new growth engine fund into acquiring BW worth 27.5 billion won, just as Chairman Choi participated in a capital increase with personal funds.

In addition, the prosecution exchanged 1.4 million dollars worth (approximately 1.6 billion won) of foreign currency to Chairman Choi for several years in the name of the employees, and took 800,000 dollars (approximately 900 million won) of foreign currency overseas without reporting it to the competent customs office. They also applied the charges of violating.

Meanwhile, the prosecution confiscated and searched the SK Group office in Jongno-gu, Seoul in connection with Chairman Choi’s charges. The prosecution is known to have seized and searched the office of the SK Group to investigate whether SK Group was involved in the process of raising the slush fund by Chairman Choi.

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