Korean Air chief faces prosecution probe over alleged fund misappropriation

SEOUL-- The chief of South Korea's top airline Korean Air will face a prosecution probe over allegations that he siphoned off company funds to use it for his house remodeling four years ago, police said Wednesday.

The National Policy Agency has referred the case on Cho Yang-ho, the chairman of the air carrier's parent firm Hanjin Group, and three others involved to the prosecution, recommending they be investigated without detention, the office said.

Police asked the prosecution twice to file for an arrest warrant for Cho on charges of embezzlement and breach of trust, but they were both turned down citing the need for further investigation.

Police suspect that Cho spent some 3 billion won (US$2.75 million) of company funds earmarked to build a hotel on renovating his residence in Seoul between May 2013 and January 2014. They also believe his wife, Lee Myung-hee, and a few other Hanjin officials are involved.

But it remains to be seen whether the prosecution will proceed with his case to an indictment since it refused to seek taking Cho under custody.

Source: Yonhap News Agency

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