South Korea tycoon and CJ chairman Lee Jae-Hyun charged with embezzlement, tax evasion; stashed away undeclared assets worth about 96 billion won (S$108.5 million) and evading taxes worth 54.6 billion won since 2004

July 18, 2013 Leave a comment

South Korea tycoon charged with embezzlement, tax evasion

Published on Jul 18, 2013
SEOUL (AFP) – The head of South Korean food and entertainment giant CJ Group was charged on Thursday with embezzlement and tax evasion, as Seoul seeks to rein in family-controlled business groups. Lee Jae-Hyun, 53, allegedly stashed away undeclared assets worth about 96 billion won (S$108.5 million) and evading taxes worth 54.6 billion won since 2004. “This is a case where a business tycoon illicitly pocketed funds diverted from listed companies and evaded tax,” Prosecutor Park Jeong-Shik told journalists. Lee created some 10 shell companies in foreign countries, including Singapore and Hong Kong, to avoid tax, he said. Three other former and current executives of the group were also charged as accomplices.

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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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