It is being reported that Core Contents Media CEO, Kim Kwang Soo (CEO Kim hereafter), is being investigated for embezzling funds that were intended for the company’s trainees.
The Seoul Central District Finance and Taxes Investigation Section 1 revealed on June 25 that they are investigating CEO Kim for allegedly embezzling some of the company’s funds, including a part of the four billion won (roughly 3.92 million USD) former Hyundai Swiss Savings Bank Chairman Kim Kwang Jin paid into Core Contents Media for the debut and activities of his son, singer Kim Jong Wook.
Prosecutors from Section 1 told News 1, “A petition against CEO Kim was submitted and we are currently investigating. Although we cannot reveal the details of the investigation, Kim CEO has not been official accused.” A petition against Kim was submitted last October and the charge written on the petition against Kim was a two billion won fraud charge. Prosecutors are currently looking through CEO Kim’s financial records and related personnel have been summoned for questioning. Prosecutors also expect to summon CEO Kim Kwang Soo for questioning soon.
Previously in November of last year, Kim Kwang Jin was indicted for presiding over bad, illegal loans. According to the prosecution, Kim Kwang Jin embezzeled 10.8 billion won from the return on these bad, illegal loans, and spent four billion of that 10.8 on his son’s musical career. Kim Kwang Jin was sentenced to four years in prison in his first round of trials for professional negligence, financial misbehavior, and breach of the Mutual Savings Bank act.