By: Paul Shin, Associated Press Writer (AP) Prosecutors sought arrest warrants Thursday for five newspaper owners and executives suspected of large-scale tax evasion and embezzlement.
The move came at the end of a six-week probe into six newspapers, including the nation's three largest dailies:
Chosun Ilbo, Dong-A Ilbo, and
JoongAng Ilbo.
The three main newspapers have been highly critical of the government and have accused President Kim Dae-jung of using the tax investigation to stifle press freedom. The government denies the charges, saying the papers should be held accountable for financial wrongdoing like any other company.
Tax officials accused the newspaper owners and executives of falsifying books or illegally inheriting assets to evade millions of dollars in corporate and personal taxes between 1995 and 2000.
Prosecutors also added embezzlement charges, alleging use of company money for private benefit. They did not say if all five newspaper owners were accused of embezzlement.
The owners and executives who face arrest include Bang Sang-hoon of
Chosun Ilbo; Kim Byung-kwan and his younger brother, Kim Byung-keon, both from
Dong-A Ilbo; Cho Hee-joon of
Kookmin Ilbo; and Lee Tae-soo from
The Korea Daily News.
The five were scheduled to appear Friday before a judge who will hear their arguments before deciding whether to issue warrants. If warrants are issued, they will be immediately detained pending trial.
Under South Korean law, people convicted of evading more than $390,000 in taxes could face prison terms of five years to life.
Concluding a 4 1/2 -month audit in June, tax authorities accused 23 leading media organizations of evading taxes totaling $339 million. Tax officials asked prosecutors to open a criminal probe against six newspapers.
The probe raised a heated debate over the motives of the government, which has lost popularity in recent months.
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