Ex-KBS Chief Arrested for Embezzlement

Former KBS President Jung Yun-joo was arrested yesterday on the charge of embezzlement, having snubbed five summonses to appear for questioning.

President Lee Myung-bak fired Jung Monday, then prosecutors received an arrest warrant for him the same day and took Jung in at his residence in Seoul yesterday afternoon.

Arriving at the Prosecutors` Office in Seoul, Jung said, “I don’t have the power to fight the arrest, but I will maintain my right to silence.”

Former KBS insiders in charge of tax reportedly told prosecutors that a written report was prepared showing the network likely would have won an appeal filed against the levying of excessive corporate taxes.

Had KBS pressed on with the appeal, it could have got refunded at least 100 billion won (100 million U.S. dollars) more than the 55.6 billion won received from the National Tax Service in return for dropping the appeal.

Despite his awareness of the report and the likely win, Jung hurriedly dropped the case to get reelected as KBS president at the annual shareholders’ meeting, causing harm to the broadcaster.

Investigators reached the conclusion that Jung’s decision cost his company 189 billion won in principal and interest, and handed documents as evidence to the prosecution.

Once questioning is over, Jung will face indictment for embezzlement.

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