Huh Hee-soo, vice president of SPC Group and the second son of SPC chairman Huh Young-in, was arrested on suspicion of smuggling and smoking liquid cannabis.
The Eastern Branch of Seoul District Public Prosecutors' Office said on August 7 that he was arrested on August 6 on suspicion of violating the law on drugs management.
He is suspected of smoking liquid cannabis smuggled from abroad.
The prosecution is investigating how Huh could bring liquid cannabis into Korea and whether he had an accomplice.
Huh started working in Paris Croissant, an affiliate of SPC Group, in 2007 and started learning about management. He was promoted to vice president after bringing in Shake Shack, a famous burger chain in New York, to Korea in July 2016.
SPC made a public statement on August 7, saying, "We sincerely apologize for the recent shameful incident. Vice President Huh is stepping down from all posts immediately and will be permanently excluded from management in the future.”
"We apologize once again for disappointing everyone who loves SPC Group," said the statement. "We promise to be reborn into a group, which strictly complies with laws and ethics, and takes social responsibilities."