Korean chaebol woes: Prosecutors are investigating the three siblings who control CJ Group to uncover the whereabouts of an estimated 500 billion won ($450 million) in Hidden Assets

2013-05-22 16:06

CJ probe expands

By Kim Jae-won
Prosecutors are Investigating The Three siblings who Control CJ Group to uncover The whereabouts of an estimated 500 billion won ($ 450 million) in Hidden Assets, Sources said Wednesday. The Three are CJ Group Chairman Lee Jay-Hyun, his Elder sister and CJ E & M Vice Chairwoman Lee Mi-kyung and JS Communications CEO Lee Jae-hwan, his younger brother. They are Suspected of hiding The Assets under “Borrowed name” Bank accounts at Home and abroad.
The Seoul Central District prosecutors’ Office has reportedly Banned Chairman Lee’s Two aides from Leaving The Country.
CJ E & M is a Key Entertainment Affiliate of The Group, while JS Communications is an Advertising Agency subsidiary of CJ.
Investigators are concentrating on tracking The food and Entertainment Giant’s alleged Slush Fund Placed in accounts at Swiss Bank Branches in Hong Kong, estimated at a minimum 20 billion won, According to The Sources.
prosecutors were said to have built a strong case against them, under Finding The names of Banking accounts The conglomerate’s Former and current executives.
Tax officials say they May Face Criminal charges.
“All English Overseas Residents must report if Account balance The Combined tops 1 billion won. Two years imprisonment for up to Face they Failing to do so, “said a high-ranking Official of The National Tax Service on Condition of Anonymity.
said CJ May have The Tax Official Funds in Hong Kong to Avoid The Hidden taxes. The Three Lees Face Added HE could if additional charges were The Funds Created through embezzlement.
According to Data from The Financial Supervisory Service, The Seven Group runs subsidiaries in Hong Kong.
They include China CJ, CJ Global Holdings, CGI Holdings, CMI Holdings and UVD Enterprises, which all have the same address in the same building. This LED investigators to conclude they were “Paper companies” for fake transactions between them and The Headquarters in Seoul.
CJ Group The allegations denied.
“All of Their Own Play The Five companies from role to Trading Supervising Chinese Businesses. They are in the same building because they do not need many employees, “said Lee Young-pyo, a spokesman for the group.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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