As a refresher, Chairman Lee Kyu Tae (66) of Ilkwang Group, a large multifaceted conglomerate with many different businesses including supplying military equipment and entertainment such as Polaris, not only got involved recently with claims from Clara of sexual harassment but also was arrested back on March 11 on the suspicion of fraud.

According to the Joint Investigation Department of Korea Defense Acquisition Program Corruption, Lee Kyu Tae is being charged with rebating and increasing the government budget by tens of billions of won (~ tens of millions of USD) by inflating the delivery payment and prices for the electronic warfare training equipment he mediated with the air force--some of which was revealed to have not been good quality. 

The first pretrial conference took place at the Seoul Central District Court on April 24 where the chief proceeded to deny all charges with, "I only mediated; I was not the direct party in the contract."  He showed a hardened expression at the trial, not even replying when asked a question.  The court asked, "Are you refusing to make a statement?" and he replied, "That is correct."

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In other news, SBS will be airing a special on its program, 'I Want to Know,' that will cover Chief Lee Kyu Tae and actress Clara.  In relation to this, a rep from Ilkwang's Polaris Entertainment told TV Report on April 24, "Because 'I Want to Know's production crew filmed within the company, we found out that they will be broadcasting this.  We, likewise, will know what the content is once we watch the broadcast," then revealed they had not been interviewed by the show.  

The special will air tomorrow on April 25!