The eldest son of former President Chun Doo-hwan was found to have held an offshore account through a paper company set up in the British Virgin Islands in July 2004, a local journalist group said Monday.

The former president’s son, Chun Jae-kook, was listed as the director and shareholder of a ghost company called “Blue Adonis” in the tax haven, and allegedly used it to open an account at Arab Bank’s Singaporean branch, the Korea Center for Investigative Journalism said.

Various paper trails point to Chun Jae-kook using an offshore agent -- PTN -- and a Singapore-based law firm -- PKWA -- to establish the shell company without registering South Korea as his domicile, said the KCIJ, also known as Newstapa.

The former president’s son is one of 86 Koreans who own tax haven accounts via shell companies and did not register Korea as their domicile. There are 245 Koreans with offshore accounts, according to the KCIJ.

Its latest finding may push the tax authorities to delve deeper into allegations against the former president and his family suspected of concealing huge wealth overseas. The former dictator has been accused of hiding his personal funds illegally gained while in power in the 1980s, as well as avoiding paying proper taxes on his wealth by claiming that he did not have enough money.

The independent news agency said that Chun Jae-kook set up the ghost company at a time when his younger brother was being investigated for slush fund allegations linked with their father.

Also, the KCIJ, in collaboration with the International Consortium of Investigative Journalists, uncovered that Cho Min-ho, former CEO of SK Securities, a subsidiary of Korea’s third-largest conglomerate SK Group, had set up a clandestine account at Arab Bank’s Singaporean branch.

The KCIJ unveiled in its second list late last month that Cho operated a shell company with his wife in the British Virgin Islands.

It noted that Arab Bank does not provide retail banking services, and “strangely,” two Koreans work at the bank as executives.

Monday’s announcement by the KCIJ’s was the fourth batch of names of Koreans who set up paper companies in the tax haven to be released.

Other names released include OCI chairman Lee Soo-young, former Korean Air president Cho Choong-keon, DSDL chairman Cho Wuk-rai, Hanjin Shipping chairwoman Choi Eun-young.

Hanwha Station Development CEO Hwang Yong-deug, former Central Banking Corp. chief Kim Seok-ki, his wife and actress Yoon Suk-hwa, and Kyungdong University president Chun Sung-yong.

By Park Hyong-ki (hkp@heraldcorp.com)