slush fund

slush fund

Seoul prosecutors continue investigation into slush fund allegations

1w ago
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檢, 롯데 '총수 비자금' 집중 수사…케미칼•홈쇼핑 의혹 조사 Shifting our focus to the expanding investigation into Korea's fifth largest conglomerate -- Lotte Group. Prosecutors are delving into confiscated materials to find clues related to allegations... that the business group amassed slush funds and engaged in other irregularities. Kim Min-ji has the latest. The probe into Lotte Group continues,... as prosecutors dig deep into allegations the conglomerate amassed slush funds through various channels. An official from the Seoul Central District Prosecutors' Office said Thursday... that four to five people,... including executives from the group's control tower,... have been summoned for questioning. Prosecutors are looking into how the funds were collected, as well as where the money was used. Prosecutors said they took statements from Lotte officials familiar with the matter... that Shin Kuk-ho,... the founder of Lotte Group,... and his second son Dong-bin, currently the group's chairman,... received roughly 25 million U.S. dollars combined in funds from Lotte units every year. Company officials have said the money was given in the form of dividends and salaries,... however, prosecutors suspect it's part of a slush fund. Building on the prosecutors' probe,... executives at units that were raided over allegations of business irregularities, embezzlement and illicit transactions are being called in for questioning. Much of the focus of the investigation is on Lotte Chemical and Lotte Home Shopping. The chemical arm is suspected of using another Lotte company in Japan to buy raw materials... in order to inflate prices,... and then used the extra cash either to create slush funds or transfer those funds back to the Japanese unit. Lotte Chemical is also known as a cash cow for the group,... with operating profit of over 1-point-1 billion last year,... which accounts for a third of the group's total profits. Lotte Home Shopping is suspected of having committed business irregularities in the process of acquiring Chinese firm Lucky Pai. In 2010, Lotte Group set up a paper company named LHSC to acquire Lucky Pai and it was carried out by Lotte units investing 160 million U.S. dollars into the paper company. Prosecutors say they plan to summon more officials. They also plan to work with authorities in Japan to obtain materials from Lotte units based there if necessary. Kim Min-ji, Arirang News. Visit ‘Arirang News’ Official Pages Facebook(NEWS): http://www.facebook.com/newsarirang Homepage: http://www.arirang.com Facebook: http://www.facebook.com/arirangtv Twitter: http://twitter.com/arirangworld Instagram: http://instagram.com/arirangworld