SEOUL-- Police said Thursday they requested an arrest warrant for Hanjin Group Chairman Cho Yang-ho for the second time over suspected fund misappropriation for his home renovation.

Cho, who doubles as CEO of South Korea's top airline, faces allegations that he siphoned off 3 billion won (US$2.7 million) from company funds to pay for his house remodeling expenses between May 2013 and August 2014.

Police requested the warrant last month on possible charges of breach of trust, but the prosecution turned down their request citing that further investigation is needed to substantiate the charges.

The 68-year-old was questioned by police last month. He has denied any wrongdoing, saying he had no knowledge of the misappropriation.

The allegations were raised during a separate police investigation into possible tax fraud by an interior renovation company that works largely for business conglomerates.

In early July, police investigators raided the airline's headquarters in western Seoul and confiscated accounting books and contract documents.

Source: Yonhap News Agency