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CJ Powercast Raided over Embezzlement Allegations against Its Head Lee Jae-hwan
Inappropriate Conducts
CJ Powercast Raided over Embezzlement Allegations against Its Head Lee Jae-hwan
  • By Michael Herh
  • July 3, 2018, 11:56
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The police are investigating Lee Jae-hwan, president of CJ Powercast and a younger brother of Lee Jae-hyun, chairman of the CJ Group, on charges of embezzlement.
The police are investigating Lee Jae-hwan, president of CJ Powercast and a younger brother of Lee Jae-hyun, chairman of the CJ Group, on charges of embezzlement.

The police raided CJ Powercast's headquarters on July 2 as part of their investigation into the allegations that the company’s president Lee Jae-hwan, who is a younger brother of Lee Jae-hyun, chairman of the CJ Group, bought a 2.5-billion-won worth yacht and several vehicles with the funds of the company and used them for personal purposes.

Before being investigated by the police on embezzlement and misappropriation allegations, Lee sparked off a social firestorm by allegedly abusing his secretary.

Lee allegedly instructed his secretary to clean up his piss pot and committed sexual harassment-like acts when conducting a job interview with candidates who applied to be his secretary and where female employees were working. Some employees even alleged that Lee watched an obscene video in front of female employees.

Regarding the allegations, Lee released a letter of apology through the company. "I sincerely apologize to those who have suffered because of my inappropriate conducts,” he said in the letter. “I am to blame for all these matters. I will ensure that these things will never happen again.”

CJ Powercast is a wholly owned subsidiary of CJ Olive Networks. Lee ran Jaesan Communications, an ad agency, and became a co-CEO of CJ Powercast after the ad agency merged with CJ Powercast.