SEOUL – South Korean police sought on Monday an arrest warrant against the chairman of Korean Air Lines, the country’s largest airline, over alleged misappropriation of company funds for renovating his house in Seoul.
Cho Yang-ho, who heads the airline and its parent company the Hanjin group, is suspected of siphoning off around 3 billion won ($2.66 million) from the company account to pay for the work, a police spokesperson said.
The South Korean police had carried out a raid on the offices of the airline company in July during the investigations and last month had interrogated the executive – who denied any wrongdoing – legal sources told Yonhap news agency.
The police is also seeking the arrest of another top official of the company in connection with the same crime.
The South Korean business conglomerate Hanjin also owns a shipping line by the same name, which had filed for bankruptcy in August 2016 and is currently being liquidated under legal supervision.
The bankruptcy of South Korea’s largest shipping company, which sent shipments to more than 90 major ports and 6,000 destinations worldwide, had sent shockwaves in maritime transport and transformed international freight traffic.