Police searched former Taekwang Group Chairman Lee Ho-jin’s home and the company’s affiliated companies over allegations against Lee of embezzlement and breach of trust on Tuesday.

Investigators from the Seoul Metropolitan Police Agency searched Lee’s home, as well as Taekwang Group's office in the Heungkuk Life Insurance Building in Gwanghwamun, central Seoul, and Taekwang Country Club in Yongin, Gyeonggi Province, to secure evidence regarding Lee’s suspected crime.

Lee is suspected of having created slush funds worth up to 2 billion won ($1.48 million) through affiliated companies of Taekwang Group.

Police suspect that Lee made false salary payments to executive employees’ bank accounts to siphon off the funds. Executives of affiliated companies in Taekwang Group are barred from holding additional executive positions in other affiliates, but police suspect that Lee created such slush funds by having some executives receive their salaries twice while holding two positions in two different companies from 2015 to 2018.

Allegations have also been raised against Taekwang Country Club, as the country club is suspected of unjustly subsidizing construction costs for other subsidiaries.

Lee formerly served a three-year prison term for embezzlement, breach of trust and tax evasion before being released in 2021. Lee was also granted a special presidential pardon in August that reinstated his right to conduct business activities. The police probe on Tuesday comes only about two months after Lee was pardoned.

While insurance company Heungkuk Life is also one of Taekwang Group’s subsidiaries, it has been confirmed that Heungkuk Life is not being searched by the police, according to news reports by Yonhap News Agency.