Prosecutors Indict Kim Young-jun, Chairman of Ewha Group, on Charges of Embezzlement and Tax Evasion Exceeding 100 Million Won

The prosecution indicted Kim Young-jun, chairman of Ewha Group, on the 30th on charges of creating slush funds worth hundreds of billions of won and tax evasion.

Chairman Kim Young-jun of Ewha Group (left), President Kim Sung-kyu [Image source=Yonhap News]

The Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Min Kyung-ho) indicted Chairman Kim on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) and arrested him, while Kim Sung-kyu, the general manager, was indicted without detention.

Chairman Kim is accused of hiding 37.3 billion won using nominee accounts and domestic and overseas paper companies to avoid paying 26.7 billion won in overdue taxes from 2012 to this year. He is also accused of embezzling 11.4 billion won for personal use by creating slush funds by falsely appointing family members as advisers in affiliates or by falsifying company accounting.

Regarding the allegation of causing a loss of 18.7 billion won by selling shares of affiliates such as Ewha Electric Industrial at prices below market value, charges of breach of trust and gift tax evasion were applied. He is also accused of gaining an unfair profit of 7.4 billion won by raising stock prices through false disclosures and then selling shares.

Chairman Kim is further accused of transferring 17.3 billion won of affiliate funds to overseas corporations listed in Hong Kong that he owned without reporting to financial authorities, and causing a loss of 58.8 billion won to related companies by having them purchase his shares at inflated prices. Kim’s brother-in-law, Manager Kim, is accused of being an accomplice in these crimes.

Earlier, the National Tax Service confirmed allegations that Ewha Group evaded gift taxes during transactions with related parties and reported the case to the prosecution in 2020.

Meanwhile, it is known that the prosecution, in cooperation with the National Tax Service, won the first trial of the overdue tax collection lawsuit against Chairman Kim in November last year and seized land worth about 12 billion won owned by him.

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