Cho, chief executive of Korean Air Lines Co. and chairman of South Korean conglomerate, the Hanjin Group, is under investigation for suspicion that he siphoned off ‎₩3 billion (£2 million/$2.65 million/€2.25 million) from company accounts to pay for the remodeling of his house in central Seoul between May 2013 and August 2014. 

When he was questioned last month, the 68-year-old denied the allegations.

Police had raided Korean Air headquarters in July searching for evidence and had confiscated several documents. 

According to South Korean news agency Yonhap, the Seoul Central District Prosecutors' Office has today refused to issue an arrest warrant.

The police have been "instructed to further investigate the case to substantiate his charges" according to Yonhap.

Police had also requested a warrant to question a group executive in charge of the construction, in relation to the suspected crime, but it is not clear whether that has also been denied.

Cho led the successful bid from Pyeongchang 2018 when they were awarded the Winter Olympic and Paralympic Games in July 2011 but he was replaced soon afterwards.

It was Pyeongchang's third consecutive bid for the event, having been beaten by Vancouver for 2010 and Sochi for 2014.

He was bought back as President of Pyeongchang 2018 by the South Korean Government in July 2014.

Cho resigned, however, in May 2016.

He later revealed he had been forced to quit following pressure from Choi Soon-sil, an adviser to then South Korean President Park Geun-hye.

Cho claimed he had resigned because he refused to sign a construction contract with the the Blue K company, a company founded by Choi.

It was one of several allegations made against Choi. 

Park was removed from office earlier this year over the scandal and is currently being held in Seoul Detention Center.