Chairman Choi Seon-won of Latestwon Appears in Court for Embezzlement and Breach of Trust... Warrant Hearing Underway

Choi Sin-won, Chairman of SK Networks, is attending the pre-trial detention hearing on the morning of the 17th.
[Image source=Yonhap News]

[Asia Economy Reporters Seongpil Jo, Daehyun Kim] Choi Sun-won, chairman of SK Networks, who is suspected of embezzling company funds to create slush funds worth over 100 billion won, appeared at court on the 17th for a pre-arrest detention hearing (warrant review).

Chairman Choi arrived at the Seoul Central District Court in Seocho-gu, Seoul, where the warrant review was held, around 9:30 a.m. and entered the courtroom. It is reported that Chairman Choi headed to the courtroom through an entrance different from the one where the press was waiting. The warrant review for Chairman Choi began at 10 a.m., presided over by Judge Won Jeong-sook, who is in charge of warrants at this court. Judge Won will listen to the opinions of both Chairman Choi’s side and the prosecution, review the submitted materials, and decide whether to issue the warrant. The result is expected to be announced as early as late afternoon on the same day.

Earlier, on the 15th, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors’ Office (Chief Prosecutor Jeon Jun-cheol) filed a pre-arrest warrant request against Chairman Choi on charges including embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. The prosecution believes that Chairman Choi created slush funds by embezzling company money while managing SK Networks and SKC. It is also suspected that part of the rent for the Walkerhill Hotel villa where Chairman Choi resided was paid with company funds.

The Financial Intelligence Unit (FIU) detected suspicious fund flows amounting to around 20 billion won involving SK Networks in 2018 and reported the matter to the prosecution. After a long-term account tracking investigation, the prosecution conducted searches in early October last year at the headquarters of SK Networks, SKC, SK Telesys, and Chairman Choi’s residence, and summoned company executives and employees to confirm whether Chairman Choi ordered the creation of slush funds. On the 7th of last month, Chairman Choi was summoned as a suspect and questioned for over 12 hours. Chairman Choi is the second son of the late Choi Jong-gun, founder of SK Group, and cousin of Choi Tae-won, chairman of SK Group. He has served as the chairman of SK Networks since 2016.