Prosecutors Summon Ji Woojong, CEO of Daemyeong General Construction, for Investigation on Allegations of Illicit Succession and Tax Evasion

Seoul Central District Prosecutors' Office, Seocho-dong, Seoul. / Photo by Choi Seok-jin

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The prosecution, investigating allegations of illicit succession and tax evasion involving Daemyung General Construction's shares, is currently summoning and questioning CEO Ji Woo-jong on the 1st.

The Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Min Kyung-ho) summoned CEO Ji as a suspect and is conducting an investigation.

Previously, in 2019, the National Tax Service conducted a tax audit on Daemyung General Construction, confirmed signs of tax evasion and illicit succession, imposed a fine of 20 billion KRW, and reported the case to the prosecution.

The prosecution suspects that company shares were illicitly gifted and succeeded from Daemyung Construction founder Ji Seung-dong to the second generation CEO Ji Woo-jong, and even to the third generation. They are focusing on allegations of corporate tax and comprehensive income tax evasion arising from this process.

The prosecution is also investigating breach of trust charges after identifying circumstances where Daemyung Construction lent several billion KRW interest-free to its subsidiary Housepan in 2015.

Following a search and seizure on September 27 at Daemyung Construction’s headquarters in Gangnam, Seoul, and affiliated company offices, the prosecution conducted another search on September 29 at the main branch of Woori Bank, Daemyung General Construction’s primary bank, and the Seoul Regional Tax Office.

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