South Korean prosecutors raid LG’s head office in tax probe

Thursday, 10 May 2018 00:00 - - {{hitsCtrl.values.hits}}

SEOUL (Reuters): South Korean prosecutors have raided LG Group’s head office as part of a probe into alleged tax evasion by family members controlling the conglomerate, the prosecutors’ office said on Wednesday.

Prosecutors are looking into possible evasion of capital gains tax worth about 10 billion won ($9.25 million) in relation to the transfer of shares of an LG affiliate, the Seoul Central District Prosecutors’ Office said in a text message to reporters.

A spokesman at LG Corp, the group’s holding company, had no immediate comment.

The probe into the country’s fourth-biggest conglomerate by assets would be the latest in a string of troubles faced by families controlling the country’s conglomerates, known as chaebols.

A tantrum by the heiress of Korean Air Lines Co Ltd earlier this year reignited public anger at the behaviour of the rich and powerful, and sparked investigations into her family and its businesses.

The liberal government of Moon Jae-in has pledged to pursue chaebol reform, urging them to improve governance structures to improve transparency and fair competition.