Suspicion of 'Tax Haven Paper Company' Involving Vice Chairman Lee Jae-yong, Police Investigation Launched

Samsung Electronics Vice Chairman Lee Jae-yong, who has completed a business trip to the Middle East, is returning to Korea through Seoul Gimpo Business Aviation Center (SGBAC) on the 9th of this month. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jeong Dong-hoon] The police have launched an investigation into allegations that Samsung Electronics Vice Chairman Lee Jae-yong established a paper company in the overseas tax haven of the Virgin Islands.

According to the police on the 20th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency is investigating the case of Vice Chairman Lee, who was reported last month by the Seoul Central District Prosecutors' Office on charges including property concealment abroad under the Act on the Aggravated Punishment of Specific Economic Crimes, tax evasion under the same act, and concealment of criminal proceeds.

When the amount of tax evasion exceeds 500 million KRW, the prosecution is authorized to initiate a direct investigation; however, in Vice Chairman Lee's case, whether tax evasion occurred or the exact amount involved has not been revealed. For this reason, it is known that the prosecution transferred the case to the police.

Earlier, on October 15, the Youth Justice Party filed a complaint with the prosecution requesting an investigation into allegations of money laundering by Vice Chairman Lee using overseas tax havens. The police summoned the complainants for questioning on the 17th of last month.

NewsTapa reported in October that Vice Chairman Lee allegedly established a paper company under a pseudonym in the British Virgin Islands, a tax haven, in 2008 in an attempt to open an account at a Swiss bank.