O`seas Travel Ban Placed on Taekwang CEO

Prosecutors yesterday said they have imposed an overseas travel ban on Taekwang Industry CEO Park Yun-cha, who is suspected of tax evasion.

Park recently returned to Korea after visiting China and Vietnam, sources said.

The Seoul Regional Tax Office, which has conducted since July this year audits on Park’s two companies - Taekwang and Jeongsan Development - said it found evidence of tax evasion and embezzlement.

An official said Park used his company’s money when he purchased 74,500 square meters of land in Gimhae, South Gyeongsang Province, at 380,000 won (333 U.S. dollars) per square meter from Korea Land Corp. in 2002.

In addition, he also reportedly created a slush fund while carrying out construction projects in Vietnam and Cambodia.

The National Tax Service requested an overseas travel ban for Park under a law that prohibits anyone who has dodged more than 200 million won in taxes from leaving the country.

A full-scale investigation is planned once prosecutors receive the audit results from the Board of Audit and Inspection.

The Seoul Central District Prosecutor`s Office has also been looking into other allegations facing Park. It received a complaint that Taekwang sought business favors in June 2006 in the process of purchasing Hu-Chems, an affiliate of the National Agricultural Cooperative Federation.

dawn@donga.com