The prosecution suspended the indictment of Samsung Group Chairman Lee Kun-hee on charges of tax evasion worth 8.5 billion won through borrowed-name accounts. The decision was made under the judgment that Chairman Lee is not in a healthy condition to be investigated.
The Seoul Central District Prosecutors' Office said on Dec. 27 that it suspended the indictment of Lee, who is suspected of tax evasion, and indicted A, a former head of the Chairman Lee's asset management team, without detention. The prosecution explained that it has decided to suspend the indictment of Chairman Lee, considering that he is currently in a state of health that cannot be investigated.
It also indicted two Samsung C&T executives and one staff member on charges of embezzling 3.3 billion won to pay housing costs for the Lee family.
According to the prosecution, Lee and A are accused of managing some 480 borrowed-name accounts under the name of former and incumbent Samsung executives, and dodged 8.5 billion won in capital gains tax by hiding his equity assets in more than 480 brokerage accounts under the names of other Samsung executives.
At the time of the police investigation, 222 borrowed-name accounts were found, but the prosecution found 260 more borrowed-name accounts through further investigation.
Meanwhile, Samsung C&T's executive director B, manager C, and executive D were also indicted without detention for embezzling 3.3 billion won in housing costs for the Lee family from 2009 to 2014.
Prosecutors judged that they paid construction money to the company that built house of Chairman Lee family with Samsung C&T's funds, pretending that Samsung C&T gave the contract.
