Prosecutors raise alarm over possible Hyosung slush fund

SEOUL, Jan. 13 (Yonhap) -- Prosecutors said Tuesday they found possible evidence
of slush funds amounting to billions of won created by Hyosung Construction Co.
and were investigating whether the parent group, headed by President Lee
Myung-bak's in-law, was aware of the existence of the funds.
Investigators at the Seoul Central District Prosecutor's Office said they had
confiscated a record book detailing company spending unaccounted for elsewhere.
The records suggest the slush funds could amount up to between 7 billion won
(US$5.1 million), they said.
Hyosung Group has been under investigation since last year for suspected
embezzlement after prosecutors were tipped off by multiple sources.
The group is headed by Cho Suck-rai, an in-law of President Lee, who serves as
the chairman of the Federation of Korean Industries, the nation's largest
business lobby group.
Prosecutors said the evidence they have on the alleged slush fund was not enough
for embezzlement charges and were trying to track down where the money was spent
and whether the group's chairman was aware of the spending.
Hyosung Construction in a statement last month denied allegations of operating
any kind of secret funds.
odissy@yna.co.kr
(END)