Prosecution Summarily Indicts Former Taekwang Group Chairman Lee Hojin for Submitting 'False Shareholder Status Documents'

Former Chairman Lee Hojin of Taekwang Group. [Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin] The prosecution has summarily indicted former Taekwang Group Chairman Lee Hojin on charges of submitting false shareholder status data to the Fair Trade Commission.

According to the legal community on the 10th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Min-hyung) summarily indicted former Chairman Lee on the 4th on charges including violation of the Capital Markets and Financial Investment Services Act.

Summary indictment is a procedure where the prosecution requests the court for a fine or other penalties through a summary order instead of referring the case to a formal trial (old trial) for relatively minor offenses.

Chairman Lee is accused of submitting shareholder status data, which serves as basic data for determining whether a company belongs to a large business group (mutual shareholding restricted business group), to the Fair Trade Commission from 2016 to 2018, by listing stocks he held under a nominee name not under the corporate owner section but under relatives, executives, or others sections.

As a result, the actual shareholding ratio of the total family ownership, including former Chairman Lee, which was as high as 39%, was lowered to 26%, allowing Taekwang Group to benefit by being excluded from companies subject to regulations on private profit appropriation by the controlling family.

Previously, the Fair Trade Commission judged that former Chairman Lee was aware of the existence of the nominee stocks from the time of inheritance and intentionally and repeatedly committed such legal violations, and reported him to the prosecution.

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