Prosecutors have indicted a company CEO who used state subsidies for corporate operating expenses, uncovering the charges through supplementary investigation.
The Anti-Corruption Investigation Division 3 of the Seoul Central District Prosecutors' Office (led by Chief Prosecutor Kim Jin-yong) indicted the CEO, identified as A, without detention on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement) for diverting hundreds of millions of won in state subsidies for purposes including company operating expenses, the office said Tuesday.
According to prosecutors, A received a total of 1.9 billion won from the government between December 2015 and June 2017 under the "Advanced Convergence Content Technology Development Project." Of that amount, approximately 500 million won was found to have been used for company operating expenses and other purposes.
Police had initially referred the case to prosecutors with a "no charges" recommendation. However, prosecutors uncovered the embezzlement of hundreds of millions of won in state subsidies through supplementary investigation, which included questioning company employees and other witnesses and analyzing messages exchanged among employees as well as account records.
"We will continue to do our utmost in investigating subsidy fraud cases to ensure that state subsidies, which are funded by taxpayers, are not misused," prosecutors said.
