SEOUL, June 5 (Yonhap) -- A former CJ Group executive suspected of playing a key role in managing a massive slush fund for the conglomerate's chairman was questioned by prosecutors over a suspicious overseas real estate deal, according to sources Wednesday. A prosecution probe into the food and entertainment conglomerate has been expanded to include its chairman Lee Jae-hyun, who is suspected of orchestrating the creation of a massive offshore slush fund and tax evasion.

SEOUL, June 4 (Yonhap) -- The prosecution has secured a key piece of evidence that the Hong Kong-based animal feed subsidiary of CJ Group was deeply involved in a shady overseas real estate deal financed by the group's secret fund, sources said Tuesday. Food and entertainment conglomerate CJ has been under an intense prosecution probe into suspicions of creating a massive overseas slush fund, sneaking the money into South Korea and evading taxes in the process.

A Korean-American tour operator sentenced to 15 years hard labour in North Korea for subversion has begun serving his time in prison, state media said Wednesday. Kenneth Bae "started his life at a 'special prison' on Tuesday", the official Korean Central News Agency said in a brief despatch, which reaffirmed that Bae had been convicted of seeking to "topple" the regime in Pyongyang. It did not elaborate on how the prison was "special".

By Ju-min Park and Paul Eckert SEOUL/WASHINGTON (Reuters) - North Korea sentenced an American citizen to 15 years of hard labor on Thursday for crimes against the state, prompting a U.S. call for his amnesty in hopes of avoiding him becoming a bargaining chip between the two countries. Kenneth Bae, 44, was born in South Korea but is a naturalized citizen and attended the University of Oregon. His sentencing comes after two months of saber-rattling that saw North Korea threaten the United States and South Korea with nuclear war.