Film producer Chung Tae-won charged with embezzlement

Producer Chung Tae-won [10Asia]

Chung Tae-won, chief of top production company Taewon Entertainment of hit film series "Marrying the Mafia" and drama "IRIS," has been charged with embezzling funds from his company.

Prosecutors said Friday that they indicted Chung on charges of embezzling money from his company to acquire stocks from another.

In May 2005, Chung put aside 200 million won in the process of acquiring junior KOSDAQ market-listed DVD title producer SpectrumDVD to purchase shares in it under his own name and up till Jun 2006, embezzled a total 1.67 billion won from the two firms, prosecutors claimed.

However, a statement that Chung issued later in the day, denied the accusations prosecutors held against him.

"The case in which prosecutors are charging me arises from them not having investigated enough into money I borrowed legitimately from Taewon Entertainment and the costs that went into executing the company's businesses," Chung stated.

"Never have I put aside my company's money to satisfy my selfish interests and desires nor used it for purposes outside of work," Chung added after explaining that the chief executive officer and accountant of his company manages all of the funds of his company.

Chung, 47, has been one of the most powerful names in the production industry since starting his career as a film importer in his twenties.

He back-door listed Taewon Entertainment on the KOSDAQ through SpectrumDVD in 2005 and has since been continuing his business in producing movies and dramas after merging the two in July 2007.

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Jessica Kim jesskim@