SK Network: Court issued arrest warrant for company chairman Choi Shin Won

SK Network is facing troubles after the court granted the prosecutor’s request for an arrest warrant for its chairman, Choi Shin Won. The company head may be arrested any time over the allegation of having a slush fund.

SK chief facing arrest for embezzlement

The Korea Times reported that the arrest warrant was issued on Feb. 17, and this is in connection with the Seoul Central District Prosecutors Office’s anti-corruption unit’s investigation on the SK Network's chairman’s possible corruption practice.

The authorities may charge Choi Shin Won for breach of trust due to his setting up of illegal fund account and corruption. The probe on the suspected slush fund started when in 2018, the Korea Financial Intelligence Unit (KoFIU) that operates under the Financial Services Commission (FSC) noticed highly suspicious cash flows at SK Networks amounting to KRW20 billion or about $18.3 million.

As the probe continues, the prosecution moved to speed up the investigation by conducting raids at SK Networks branches and headquarters, including SK Telesys and SKC offices. Choi Shin Won’s residence and the local tax office were also checked in October to obtain evidence that will give credence to the allegations thrown against the businessman.

In any case, Choi was questioned by the investigators last month, and it reportedly lasted for over 12 hours. He was also questioned for his possible involvement in stock manipulation offense. The prosecutors also think that more than KRW20 billion is involved in this case.

Prosecutors’ request for the arrest warrant

The 68-year-old accused is the son of SK Group founder Chey Jong Gun, and he previously worked as the chairman of the chemical manufacturing company, SKC, from 2000 to 2015. Choi Shin Won chaired the SK Networks since 2016.

South Korea’s Pulse News reported that the prosecutors were trying to secure an arrest warrant for the SK Network’s chief early this week. The Anti-Corruption Investigation Department of the SCDPO made this request for Choi's potential violation related to the Act on the Aggravated Punishment and more.

Meanwhile, in response to the court's decision to grant the arrest warrant for Choi, SK Networks stated that it would do its best and exert utmost efforts to prevent chaos in the management amid the growing uncertainties surrounding the company’s business environment.