245 Koreans have operated paper companies in tax havens such as the British Virgin Islands. The impact of this latest news is expected to spread if signs of illegal activities, such as tax evasion and smuggling of foreign currency, are discovered from the overseas bank accounts owned by the shell companies.

On May 22, the independent media outlet, Newstapa held a press conference at the National Union of Mediaworkers conference room and announced the primary results of the "tax haven project," a joint investigation with the International Consortium of Investigative Journalists (ICIJ).

They announced, "We found that 245 Koreans established paper companies in overseas tax havens. Among the list of Koreans, we have confirmed the names of Lee Soo-young, former chairman of the Korea Employers Federation and chairman of OCI and his wife; Lee Young-hak, the wife of Cho Choong-kun, former vice-chairman of Korean Air; and Cho Wuk-rai, chairman of DSDL (formerly Dongsung Development) and his eldest son Cho Hyun-kang."

According to the information released by Newstapa, OCI chairman Lee Soo-young and his wife Kim Kyung-ja, director of the OCI Museum of Art, founded Richmond Forest Management Ltd. in the British Virgin Islands in April 2008.

Lee Young-hak, the wife of former Korean Air vice chairman Cho Choong-kun founded the shell company, Kapiolani Holdings Inc. in the Virgin Islands in June 2007. The company issued only one share.

DSDL chairman Cho Wuk-rai and his eldest son also founded Quick Progress Investment Ltd., another paper company, in the Virgin Islands in March 2007. The reporters also uncovered transaction information concerning luxury overseas real estate in connection with Lee Young-hak and Cho Wuk-rai.

Kim Yong-jin, head of Newstapa said, "We have confirmed the identities of more than 20 Koreans through multiple channels so far, in addition to the three we have released. In particular, many leading figures in our society from various fields including chaebol owners and their families are included in the list of 245 Koreans." Newstapa will announce a second list including leading business figures on May 27, and plan to release the results of their investigation a couple of times each week.

OCI released their "official position" and said, "In 2006~2008, Chairman Lee earned US$1 million as chairman of the board of OCI Enterprise, the U.S. subsidiary of OCI. He managed his earnings in a private account."

OCI added, "The account was closed in 2010 and all the money from that account was transferred to an account in the U.S. If we failed to report anything or to pay due taxes, we will immediately take necessary action."

Korean Air announced, "Former Chairman Cho Choong-kun has not been involved in the management of the company since he resigned in 1997. This incident has nothing to do with the company." DSDL also said, "It is the personal affair of Chairman Cho Wuk-rai, and does not concern the company."