Dishonorable Matter
Hanjin Group chairman Cha Yang-ho, suspected of having spent his money on his home’s interior decorations, visited the police headquarters on September 19.
“I will cooperate with investigators,” chairman Cho said when he was asked “"Did you know that some corporate funds were misused as construction cost for your home?" while making an appearance at the headquarters of the National Police Agency in Migeun-dong, Seoul around 10 am on the day.
The Special Investigation Division of the National Police Agency cited chairman Cho for the misconduct on August 24, but chairman Cho submitted a request for deferment through his attorney. "I could not present myself because I was in the United States," chairman Cho said at that time.
Chairman Cho is suspected of having misappropriated about 3 billion won from cost for the construction of the Incheon Grand Hyatt Hotel West Tower and spent the funds on interior decoration work for his residence in Pyeongchang-dong, Jongno-gu, Seoul from May 2013 to August 2014. The police believe chairman Cho committed a breach of trust in terms of special criminal laws on specific crimes. The police arrested the company's advisor Kim (73) on September 16 for alleged involvement in the crime.
This investigation was launched during a tax probe of the ompany that carried out the interior work for Cho's home. The police investigating in the company after getting a tip-off, seized circumstantial evidence of a crime linked to the Hanjin Group and searched the headquarters of Korean Air in Gangseo-gu in Seoul in July. The company in charge of interior work for Cho’s residence is the same company that engaged in the construction of Yeongjongdo Hotel.