Prosecutors on Thursday raided Daewoo Development Co., Ltd. Engineering & Construction, a medium-sized general construction company, and its former and current top executives over suspected accounting fraud involving tens of billions of won.
The Seoul Central District Prosecutors Office sent prosecutors and investigators to 10 places, including the company's headquarters in Incheon, a Seoul office, and the homes of Chairman Lee Sang-young and former CEO Han Jae-jun, to secure documents related to the alleged irregularities.
Lee and Han are also suspected of embezzlement of company money and breach of trust.
Earlier in January, a civic group filed complaints against them with police, alleging that the company appears to have committed accounting fraud of about 100 billion won (US$76.4 million).
Police opened an investigation into the allegations before sending the cases of Han and a company financial official to the prosecution.
Prosecutors then launched an additional investigation suspecting that Lee and Han had committed embezzlement and breach of trust in the process of the alleged accounting fraud.
Source: Yonhap News Agency