EX-KUMHO ASIANA CHAIRMAN ARRESTED

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The former chairman of Kumho Asiana Group was arrested Thursday on charges of unfairly supporting group affiliates during the group's restructuring under his leadership. The court issued an arrest warrant for Park Sam-koo, citing the possibility of evidence destruction.

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The Seoul Central District Court issued an arrest warrant for Park Sam-koo on counts of embezzlement and violating the anti-monopoly and fair trade act. The court said there are considerable grounds that support the allegations against him. It underlined its decision to issue an arrest warrant for the former Kumho Asiana Group chair, as he has the potential to attempt to destroy evidence. Park was placed in Seoul Detention Center and will have to undergo prosecutorial questioning while in detention. He stepped down from the chairmanship in March 2019. Park is now accused of engaging in unfair inter-affiliate transactions during the group's restructuring, which began in 2015. Park is accused of providing 290 billion won to Kumho Buslines, enabling it to acquire other group affiliates. He and his family held a large share in the transportation service company. Park helped Kumho Buslines receive 160 billion won, using its stake in Asiana Airlines' in-flight meal business as collateral. He is also suspected of making Kumho Engineering and Construction as well as other affiliates lend 130 billion won to the bus company. Prosecutors are also looking into whether Park and his family gained unfair profit through the internal transactions, as they held more than 40 percent stake in Kumho Buslines as of 2016. Park is reportedly denying the accusations, insisting the loans to Kumho Buslines were legitimate. With the tycoon arrested, prosecutors' investigation is expected to gain traction.