Prosecutors Request Arrest Warrant for Choi Sin-won, SK Networks Chairman, on Charges of Embezzlement and Breach of Trust Involving 100 Billion Won

Choi Jin-won, Chairman of SK Networks

[Asia Economy Reporter Kim Daehyun] On the 15th, the prosecution filed an arrest warrant for Choi Sinwon, chairman of SK Networks (68), who is suspected of embezzling a large amount of company funds to create slush funds. Chairman Choi is the second son of the late Choi Jonggeon, founder of SK Group and chairman of Seongyeong Group, and the cousin of Choi Tae-won, chairman of SK Group.

On the same day, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jeon Juncheol) announced that it had applied charges including embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and filed a pre-arrest warrant for Chairman Choi.

He is suspected of embezzling company funds to create slush funds worth around 100 billion won. Last October, the prosecution conducted a search and seizure of Chairman Choi’s residence and SK Networks, securing various accounting documents, and on the 7th of last month, summoned him for questioning as a suspect.

Additionally, Chairman Choi is also suspected of selling his company shares at a low price to his son-in-law and others to evade regulations on unfair internal transactions. In 2015, while holding 100% of the shares of ANTS, which supplied communication equipment to SK Telesys, he transferred all shares to his son-in-law and others at a significantly lower price after the company became subject to unfair internal transaction regulations.

Chairman Choi’s pre-arrest warrant hearing is expected to be held around midweek.

This content was produced with the assistance of AI translation services.