LG Group was thrown off guard Wednesday as the prosecution raided the headquarters of the conglomerate as part of an investigation into alleged tax evasion by the family of LG Chairman Koo Bon-moo.

The Seoul Central District Prosecutors’ Office sent a team of investigators to search the offices in Yeouido, Seoul, and confiscate materials including accounting documents.

The raid follows a complaint filed by the National Tax Service against the Koo family, in relation to the suspicion that they evaded taxes levied for changes in stock ownership after the family members unloaded and increased their equity holdings in LG affiliates. 

Prosecutors are also investigating allegations that the owner family, namely the chairman’s son and heir to the group, Koo Kwang-mo, made an unfair amount of profit from his majority stake in one of LG’s affiliates.

“As the raid was completely unexpected, we really have nothing to say,” a high-ranking LG Group official was quoted as saying.

“It is not appropriate to discuss the matter, and I believe it is our position to cooperate as much as we can with the prosecutorial probe.”

Another official was quoted as saying that the group was currently looking into the reason and basis behind the raid.

LG is the latest chaebol to join a list of conglomerates being investigated. Groups including Samsung, Hyundai Motor and Lotte have been subjected to prosecutorial probes in recent months over issues ranging from labor disputes to alleged corruption. (khnews@heraldcorp.com)