SEOUL, Nov. 8 (Yonhap) -- Prosecutors raided the offices of two affiliates of the South Korean conglomerate SK Group early Tuesday as part of an investigation into allegations that the founding family misappropriated company funds. 

Scores of prosecutors searched the offices of SK Holdings Co., the group's de facto holding company, and SK Gas Co., the country's biggest distributor of liquefied petroleum gas, located in central Seoul, for hours earlier in the day to confiscate accounting books, transaction statements and other relevant materials that would support embezzlement allegations. 

In May, the Seoul Central District Prosecutors' Office launched an investigation into the allegation that SK Group Chairman Chey Tae-won attempted to soften his personal losses from futures investments by pocketing part of a 280 billion won (US$251 million) investment the subsidiaries made into Benex Investment, a financial firm owned by former SK Telecom Vice President Kim Jun-hong. 

Kim has been accused of stock manipulation and is standing trial at this time.
Prosecutors are also looking into allegations that Chey's younger brother Chey Jae-won, who is vice chairman, diverted funds from three affiliate companies and subcontractors to create a slush fund. 

After the raid, an official of the SK Group denied the allegations, but said the company will cooperate with the investigation.

"There have been such rumors, but none of the SK companies have ever used their funds to either compensate the chief for his investment losses or to help the vice chief create a slush fund," the official said, declining to be identified.
"We will fully cooperate with prosecutors to clear all the allegations," the official said.