Kolmar Korea Chairman Yoon Dong-han was indicted on charges of making a profit through borrowed-name security accounts and evading billions of won of taxes.
The Seoul Central District Prosecutors' Office Special Part 3 announced on January 26 that it charged Yoon with suspicion of violating taxation and law of punishment on tax criminal according to Special Act on the Aggravated Punishment without detention.
According to the prosecution, Yoon is under suspicion of evading 3.67 billion won (US$3.16 million) of transfer income taxes and aggregate income taxes by trading stocks of subsidiaries under Kolmar Group, including Kolmar Korea, Kolmar Korea Holdings and HNG, with names of his distant relatives and other executives from 2012 to 2015. Yoon made a transfer marginal profit worth some 17 billion won (US$14.63 million) and a dividend income worth some 5 billion won (US$4.3 million) with the same method.
Kolmar Group, a cosmetics manufacturer, is composed of its holding company, Kolmar Korea Holdings, and subsidiaries, such as Kolmar Korea, Kolmar Pharma, CNI Development, Kolmar Korea Gyeongin, HNG and Kolmar BNH.
Yoon is a dominant stockholder who possesses a 22.5 percent stake in Kolmar Korea and a 49.2 percent stake in Kolmar Korea Holdings as of the end of 2015.