Maestro Chung’ brother faces arrest

Chung Myung-keun

An arrest warrant has been sought for the elder brother of maestro Chung Myung-whun on charges of fraud.

Investigators at Incheon District Prosecutors’ Office said Monday they sought the warrant for Chung Myung-keun, chief of performing arts management company CMI, for embezzling billions of won in subsidies from Incheon City and other funds.

According to the prosecution, the 70-year-old promoted “Incheon and Arts,” a joint project with the city government to develop the local performing arts industry, and received subsidies from the city government and New Songdo International City Development (NSIC).

“After the event was over, he was supposed to return the leftover money, but he embezzled it,” a prosecutor said.

Incheon City said it provided a total of 9.2 billion won ($8.2 million) to the renowned conductor’s brother between 2005 and last year. The NSIC also supported 5 billion won between 2005 and 2008.

“We suspect the CMI chief misappropriated the money by inflating expenses paid to subcontract firms and later getting some funds back,” the prosecutor said.

Prosecutors raided the headquarters of CMI in southern Seoul last month and secured documents and accounting records about various cultural events which he had been in charge of at the port city. They also examined hundreds of bank accounts connected to him, including overseas accounts.

The senior Chung is also under a separate investigation as the Incheon Art Center, which is constructing a concert hall, an opera house and art studios in Songdo International City, filed a complaint against him in February for breach of trust.

Officials of the art center developer claimed when he was head of the development company between 2007 and 2009, he selected another company he owned and a firm operated by his friend as subcontractors for the art center establishment and marketing, paying 10 billion won to the two companies.

Prosecutors are looking into how the elder Chung spent the money, not ruling out the possibility of not only personal use but also for presenting kickbacks to Incheon City officials. The construction of the art center was suspended in June last year due to financial problems. It will be resumed next month and is scheduled to open in early 2015.

The CMI head is the eldest of the musician family, with three siblings known as the Chung Trio _ Seoul Philharmonic Orchestra music director and pianist Myung-whun, violinist Kyung-wha and cellist Myung-wha. <The Korea Times/Kim Rahn>

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