Alleged Corruption

[Anchor Lead]

Taekwang Group is under police investigation yet again for alleged corruption. Police have raided a golf course operated by Taekwang to find evidence of the alleged embezzlement of corporate funds.

[Pkg]

Whistling Rock is a golf course located in Gangwon-do Province, which is run by Taekwang Group. It is known for its upscale facilities.

[Soundbite] Staff at golf course(voice modified) : "The membership fee is quite expensive here. It's about 1.3 billion won for individual members and 2.6 billion won for corporate members. Only members are allowed to enter the golf course. It's strictly controlled."

Former Taekwang Group Chairman Lee Ho-jin owns the golf course via the group's subsidiary called Tsis. Police have discovered a suspicious cash flow in the transactions of gift vouchers issued by Whistling Rock. They have found that the gift vouchers, which can be used at the golf course, were purchased en masse by Taekwang's other subsidiaries. The amount of transactions reportedly reaches billions of won. Police believe that the subsidiaries only paid for the vouchers, which were later used for other purposes. Police are investigating whether or not cash that had been received for the sold vouchers was used as slush funds for the former chairman and other executives of Taekwang Group.

[Soundbite] Official at Gyeonggi Nambu Provincial Police Agency(voice modified) : "We are investigating the allegation that Taekwang Group's subsidiaries bought and used gift vouchers from Whistling Rock owned by the group owner."

Police are also looking into whether Taekwang Group incurred losses on other golf courses run by Taekwang by allowing Whistling Rock members to use them free of charge.