​LG office raided in tax evasion probe

LG Group's headquarters has been raided by prosecutors for alleged tax evasion.
Written by Cho Mu-Hyun, Contributing Writer

Prosecutors have raided LG Corp's headquarters in Yeouido, South Korea, for alleged tax evasion.

Investigators acted on complaint filed by the National Tax Service, South Korea's equivalent of the US's IRS, and the main target is the South Korean conglomerate's finance division.

Members of the controlling Koo family allegedly transferred shares to each other but hid it as a normal transaction to avoid capital gain taxes, prosecutors said. Some $10 million taxes were evaded, they claim.

The Koo family is the largest shareholder of LG Corp, which is the parent company of affiliates such as LG Electronics and LG Display.

They are also in managerial roles in various subsidiaries of the conglomerate.

Koo Bon-moo, the head of the family, is CEO and chairman of LG Corp, though he is reportedly not a target.

LG said there was a difference of opinion among authorities concerning tax payments but declined to comment further.

In a separate case, Samsung heir J Y Lee was freed from prison in February after receiving a suspended sentence following alleged bribery. He is awaiting trial in the Supreme Court.


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