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Hyosung Group raided over alleged use of secret funds

Nov 18,2017
Prosecutors said Friday they raided the main headquarters of Korean conglomerate Hyosung Group in western Seoul over alleged management of secret funds.

Investigators from the Seoul Central District Prosecutors Office also searched four of its affiliated firms and the residences of four officials suspected of involvement to seize evidence, they said.

The raid came as part of allegations that the 25th-largest family-controlled conglomerate has been running slush funds for former chairman Cho Suck-rai and his eldest son - the group’s current head - Hyun-joon, through four affiliates.

Three of the affiliates are suspected of investing in deals that are irrelevant to their businesses and inflicting at least tens of billions of won in losses.