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Ex-Pres.` Confidant to Face Tax Evasion Charge

Posted May. 12, 2009 03:14,   


Prosecutors yesterday said they plan to indict Chun Shin-il, 66, chairman of Sejoong Namo Tour and confidant of former President Roh Moo-hyun, for tax evasion.

Chun is suspected of having transferred stocks to his eldest son Se-jeon through an illegal account of former Taekwang Industrial Chairman Park Yeon-cha to avoid inheritance taxes.

Chun is believed to have used Park’s account when his son, who joined Sejoong in 2003, was appointed co-representative of the company in March this year. Chun sold Sejoong shares held under his and his family’s names at 6,000 to 12,000 won (4.81 to 9.62 U.S. dollars) per share.

Se-jeon allegedly bought the stocks at 2,000 to 4,000 won (1.60 to 3.20 dollars) per share between October and December last year.

Prosecutors are also probing the use of Park’s accounts when Chun acquired KOSDAQ-listed Namo Interactive in 2003 and secretly listed Sejoong through Namo in 2006.

Chun is also known to have spoken last year to then National Tax Service Commissioner Han Sang-ryule while undergoing a tax audit. Investigators said Chun got help from Han in getting his son to rise in Sejoong management and gained economic benefits by using accounts in other people’s names.

Prosecutors are considering tracking Han’s accounts and will probe former and incumbent lawmakers; local government heads; high-ranking court officials; prosecutors; and police who reportedly received bribes from Park as early as this week, and seek arrest warrants for some of them.