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Head of home-grown coffee franchise quizzed over embezzlement allegations

2018/07/12 10:59

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SEOUL, July 12 (Yonhap) -- Prosecutors questioned the chief of a local coffee franchise on Thursday over allegations that he siphoned off company funds.

Kim Do-kyun, head of Tom N Toms, is being probed at the Seoul Central District Prosecutors' Office, its officials said.

He is suspected of pocketing money from "incentives" paid by a Tom N Toms supplier in return for their contract, which prosecutors believe amounts to billions of won.

He is also accused of setting up a superfluous company for the purpose of charging member stores unnecessary fees for dough supplies.

Tom N Toms was founded by Kim in the early 2000s as a spinoff from another coffee chain he created with a partner, growing into a successful local brand with over 400 franchise stores nationwide.

Prosecutors raided his residence and office in early May to obtain evidence for the investigation.