The prosecution on Friday filed for an arrest warrant for SK Group vice chairman Chey Jae-won for alleged embezzlement.

According to Seoul Central Prosecutors’ Office, Chey Jae-won, the younger brother of SK chairman Chey Tae-won, is suspected of having orchestrated money-laundry of 49.7 billion won ($43.2 million) out of 280 billion won set aside by 18 affiliates of the group for investment into Benex Investment.

He is suspected of handing it to his elder brother who has allegedly spent as much as 300 billion won in failed stock futures investments.

Prosecutors earlier arrested Kim Joon-hong, head of Benex, for embezzling 100 billion won. The investigators believe that the money was part of SK’s investment and that Kim aided the illegal use of the SK funds.

By Bae Ji-sook (baejisook@heraldcorp.com)