UNJournal Jon Lee | Chairman Choi Jeong-woo of POSCO Holdings, the holding company of the POSCO Group, and attendees in the overseas board meeting are under investigation for allegedly illegally executing expenses while holding the board meeting in Canada last year.

According to police on Jan. 12, the Seoul Suseo Police Department is investigating 16 people, including Chairman Choi Jeong-woo, on suspicion of breach of trust in business.

Choi and others are suspected of receiving financial support from POSCO subsidiaries other than POSCO Holdings for the board meeting last year.

The board of directors of POSCO Holdings reportedly held a board meeting in Canada for five nights and seven days from August 6 to 12 last year. A total of 680 million won ($680,000) was reportedly spent on the trip.

According to the company's bylaws, POSCO Holdings is supposed to pay for the expenses, but its subsidiaries POSCO-Canada and POSCO allegedly shared about half of the expenses, 310 million and 20 million won, respectively.

Police are also investigating whether outside directors, including incumbent professors, who attended the board meeting, violated the anti-graft law.

The attendees are suspected to have traveled by chartered helicopter, been provided with high-end hotels and lavish meals during the board meetings.

The Seoul Central District Prosecutors' Office received a complaint last month regarding the allegations, and the case was transferred to the Suseo Police Station.

Previously, Chairman Choi was sent to prosecutors in September last year for allegedly using company cars privately with family members in addition to his official car on suspicion of breach of trust in business.