Arrest Warrant Denied for Ji Woo-jong, CEO of Daemyung Construction, on Charges of Tax Evasion and Breach of Trust
[Asia Economy Reporter Kim Daehyun] The prosecution requested an arrest warrant for Ji Woojong, CEO of Daemyung General Construction, who is accused of massive tax evasion and breach of trust, but the court did not accept it.
On the 24th, Judge Kim Jungmin, in charge of warrants at the Seoul Central District Court, dismissed the prosecution's request, stating, "Although the facts of the crime are largely substantiated, at this stage of a long-term investigation, it is difficult to recognize grounds for detention such as flight risk or evidence tampering."
Earlier, CEO Ji is accused of evading a total of 13.5 billion KRW in corporate tax, comprehensive income tax, and gift tax from 2010 to 2018 through accounting book manipulation. He is also accused of causing damages worth approximately 41.9 billion KRW to Daemyung Construction and others from 2007 to 2016 through accounting book manipulation and unsecured loans.
The prosecution is also investigating breach of trust allegations after discovering that Daemyung Construction lent hundreds of billions of won interest-free to its subsidiary Housepan in 2015. The largest shareholder of Housepan (43.98%) is CEO Ji's son.
The prosecution suspects that company shares were illicitly gifted and inherited from Daemyung Construction founder Ji Seungdong to the second generation CEO Ji and even the third generation. They are focusing on allegations of corporate tax and comprehensive income tax evasion that occurred during this process.
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On September 27, the prosecution conducted a search and seizure at Daemyung Construction's headquarters in Gangnam, Seoul, and affiliated company offices, and two days later, they searched the main branch of Woori Bank, the main bank of Daemyung General Construction, and the Seoul Regional Tax Office.
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