A Flash Report on the Entertainment Lobby Scandal

The Seoul District Prosecutors Office investigation into the allegations on the lobby scandal involving “F” entertainment group is gaining momentum as it attempts to uncover the real owners of the stocks that were officially owned by relatives of producers.

The prosecutor received intelligence information that in April 2005, the company listed its stocks on four different levels through backdoor listings, and is now focusing on whether the producers who allegedly received its stocks for free (A level) or for one-fourth of the real stock price (B level) also own the stocks.

Prior to this, Seoul’s east district prosecutor’s office began an investigation on the “F” company’s stock price manipulation last year, following the request from the Financial Supervisory Service, but it had to drop the case because of a lack of evidence. The prosecution is tracing it former accountant who is known to be close to the company’s major stockholder, Lee (45).

Meanwhile, the prosecutors in the Seoul district office questioned Lee, who was accused of approximately 1.8 billion won worth of tax evasion and some 6.2 billion won of embezzlement. Lee reportedly said, “I did my duty on paying taxes, and I never committed any wrongdoings.”

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