South Korea newspaper owner arrested

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

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

Chang, 65, is accused of embezzling company funds worth 13 billion won ($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. - Sapa-AFP