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Prosecution Links Suspicious Money Flow to Cho Family Private Equity Fund

Write: 2019-09-19 14:14:16Update: 2019-09-19 15:30:40

Prosecution Links Suspicious Money Flow to Cho Family Private Equity Fund

Photo : YONHAP News

Anchor: Prosecutors currently investigating dubious investments in a private equity fund by the family of Justice Minister Cho Kuk have reportedly uncovered suspicious money flows. The fund's management appears to have paid more than 100 million won to the brother-in-law of the minister.
Celina Yoon has more.

Report: Justice Minister Cho Kuk's brother-in-law injected 500 million won into Co-Link Private Equity, the operator of a fund heavily invested in by Cho's family, in March 2017.

He borrowed 300 million won from his sister Chung Kyung-sim, who is Cho's wife, and also received a 200 million won loan jointly with Chung, to put together the funds.

Immediately after the investment, Co-Link Private Equity started paying the brother-in-law eight-million won a month, totaling more than 100-million won.

The payments were ostensibly "consulting fees," but the prosecution believes that the money was paid as interest for lending the money to Co-Link or that there could be a dual contract.

The prosecution also found circumstantial evidence that around one billion won from the billions of won that Cho's cousin's son embezzled from a company went to Chung. 

Cho's cousin's son, who is believed to be the de facto head of Co-Link, allegedly embezzled billions of won from WFM, a business which the private equity invested in. These allegations were included in the arrest warrant for Cho's cousin's son.

The prosecution has been summoning those related with the private equity for investigation. 

Based on evidence and testimony it collected from those related with the fund, the prosecution is expected to summon Cho's wife within this week. 
Celina Yoon, KBS World Radio News.

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