S Korea newspaper owner arrested for embezzlement

Police have arrested the chairman of one of South Korea's major newspapers on charges of embezzling millions of dollars, prosecutors said today.

Chang Jae-Ku,65, owner of the Hankook Ilbo media group which includes several well-known dailies, magazines and a cable channel, was arrested yesterday night.

Chang is accused of embezzling company funds worth 13 billion won (USD 11.6 million) for his personal use and causing the group a further financial loss of 30 billion won by offering business benefits to his creditors.

The labour union of the Hankook Ilbo - the group's flagship newspaper - had asked Seoul prosecutors to investigate Chang back in April.
 

The management responded by firing the paper's editor-in-chief, banning most unionised reporters from entering the newsroom and withholding their salaries.

The group - the longtime organiser of the Miss Korea beauty pageant has suffered financial troubles for years.