Police Investigate Kim Hong-guk, Chairman of Harim Group, on Suspicions of Embezzlement and Breach of Trust

Seoul Metropolitan Police Agency file photo / Photo by Moon Honam munonam@

[Asia Economy Reporter Jeong Dong-hoon] The police are investigating Kim Hong-guk, chairman of Harim Group, on charges of embezzlement and breach of trust.

According to the police on the 24th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency received a complaint from the civic group People's Livelihood Countermeasures Committee regarding allegations of tax evasion, embezzlement, breach of trust, and market order disruption against Chairman Kim of Harim Group, and has been conducting an investigation since last October.

Earlier, the Fair Trade Commission (FTC) revealed that Chairman Kim Hong-guk of Harim Group gifted 100% of the shares of Korea Someot Sales (now Olpum), which is at the top of the group's governance structure, to his eldest son Kim Jun-young in January 2012. Subsequently, affiliated companies were found to have provided excessive economic benefits to Olpum through high-priced purchases of goods, toll transactions, and low-priced stock sales. The FTC imposed a total fine of 4.888 billion KRW.

Based on the FTC's investigation results, the People's Livelihood Countermeasures Committee filed a complaint against Chairman Kim with the police. The police, having received the case, are currently reviewing the legal aspects to determine whether this complaint overlaps with the FTC's sanctions. They plan to conduct a preliminary investigation based on the FTC's investigation materials and then summon Harim-related personnel for questioning in sequence.

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