Tax evasion: South Korean prosecutors raid LG’s head office in tax probe
09 May 2018

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 spokeswoman at LG Corp, the group’s holding company, said the relevant parties will cooperate with the prosecutors’ probe.

The probe appeared to have been caused by differing views on the amount of tax payable after some shareholders sold shares in the market and paid the corresponding taxes, she said.

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

– Reporting by Joyce Lee, Ju-min Park; additional reporting by Hyunjoo Jin, Reuters, 9 May 2018.

Link to Reuters.

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