Police seek arrest of Korean Air chief for fund misappropriation

Police requested an arrest warrant for the chief of Korea's top airline Monday for his alleged misappropriation of company funds for home renovation. Cho Yang-ho, CEO of Korean Air Lines and chairman of Hanjin Group, is under investigation over suspicion that he siphoned off 3b won (US$2.65m) from company coffers to pay for the remodeling of his house in central Seoul between May 2013 and August 2014. He faces charges of breach of trust. When he was questioned last month, he denied any wrongdoing, saying he had no knowledge of the misappropriation. Police also sought a warrant to arrest a group executive in charge of construction involved in the suspected crime. The allegations were raised during a separate police investigation into possible tax fraud by an interior renovation company that works largely for business conglomerates. In early July, police investigators raided the airline's headquarters in western Seoul and confiscated accounting books and contract documents.<br/>