Seoul Central District Prosecutor's Office is investigating whether South Korea’s largest tobacco company KT&G chief Min Young-jin raised a slush fund, according to multiple media outlets.
The prosecutor is said to pick up some clues that he embezzled company funds in the process of acquiring and operating the company's subsidiaries since he took office in 2010. It reportedly summoned former and current executives of KT&G in a bid to find out whether the company raised a slush fund through its subsidiaries. KT&G acquired a cosmetic firm in 2011 but the firm’s capital was impaired last year amid weakening sales.
The prosecutor is set to probe into Min if more of his accusations are revealed in the investigation process.
KT&G said, "Although we do not know what kind of investigation the prosecutor will make but we will cooperate with the investigation and resolve suspicions.
Min served a consecutive term in 2013 as he was credited with raising KT&G's market share. He is set to resign from his post next February.