Chey also was accused of using $6.4 billion of the company's funds as collateral for personal loans. Prosecutors said another $12 million was misappropriated, the Yonhap News Agency reported Thursday.
The chairman's younger brother Jae-Won was indicted a week earlier on similar charges.
Prosecutors said the brothers misappropriated funds that went to Benex Investment, led by Kim Jung-hong, who was also indicted on embezzlement charges.
2014: The Year in Music [PHOTOS]