Former SK Shipping Co. advisor Kim Won-hong has been arrested in Taiwan in connection to SK Group chairman Chey Tae-won’s slush fund case.

Kim was singled out as a key figure in Chey’s alleged embezzlement activities, but has avoided prosecution by refusing to return to Korea from Taiwan.

According to Korean authorities, Kim was arrested by Taiwanese authorities for violating immigration laws.

The two countries’ authorities are said to be working closely together regarding Kim’s extradition to Korea.

In January, Chey was given a four-year prison sentence for embezzling 45 billion won ($40 million) from SK Group companies.

Chey has since appealed claiming that he was responsible for making bad investment decisions but that he had no part in the embezzlement of company funds.

By Choi He-suk  (cheesuk@heraldcorp.com)