CJ Powercast CEO Lee Jae-hwan, who is suspected of misusing company money, will be investigated by the police.
The special investigation department of the National Police Agency (NPA) announced on August 17th that it will summon CEO Lee as a suspect on charges of breach of duty.
Lee is suspected of buying 2.22-million-dollar worth of yachts using the company’s name and using 2.66 million dollars for his personal use early this year.
It is also reported that Lee bought several cars with his own money and used them personally, facing charges of embezzlement and breach of trust.
Police officers dispatched investigators to the headquarters of CJ Powercast at the Gangnam branch in Bundang-gu, Seongnam, Gyeonggi Province on August 2nd to secure related data including company funds and expenses.
Lee Jae-hwan is the eldest son of the late Samsung Group founder Lee Byung-chul, the third son of CJ Group’s honorary Chairman Lee Myung-hee, and the brother of CJ Group’s chairman Lee Jae-hyun.
The advertising company ‘JS Communications’, which was in operation, merged with CJ Powercast and became a co-representative. CJ Powercast is a wholly owned subsidiary of CJ Olive Networks. CEO Lee Jae-hwan holds a 14.83% stake in CJ Olive Networks.