Daewoo founder jailed for fraud

The founder of Daewoo has been jailed for 10 years and must forfeit $22 billion after being found guilty in South Korea’s biggest financial scandal.

    Kim has a week to appeal

    Kim Woo-choong was convicted of  securing illegal bank loans, fabricating accounts to falsify assets and embezzling funds from the cars-to-engineering conglomerate.

    Hwang Hyun-joo, the judge presiding at Seoul central district court, said in his summary: "There is a need to show that there is a heavy penalty to pay when you commit acts that betray the trust of economic entities."

    The court also ordered Kim to pay a $10,600 criminal fine.

    Last June, Kim was taken into custody at Seoul Airport after arriving from Vietnam.

    The prosecution, which sought a 15-year prison term and $24,600 in forfeiture, accused Kim of illegally securing loans of about $10.6 billion, taking about $20 billion in Daewoo funds through overseas accounts and helping falsify company asset books to the tune of about $43.6 billion

    Kim has a heart disorder and, because of this, the court suspended the sentence until July 28 and has given him a week to appeal.

    Kim had turned Daewoo into the country’s second-largest company before fleeing in 1999.

    Splintered

    Daewoo collapsed in the same year and splintered into a clutch of businesses with the government taking control of their debts.

    Several executives at other family-owned South Korean firms, known as chaebol, have been investigated in recent months.
       
    Last month prosecutors indicted Chung Mong-koo, the chairman of Hyundai, on charges of embezzling funds and causing losses at the car group's companies by forcing them to support weaker affiliates.

    SOURCE: Reuters


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Why America's Russia hysteria is dangerous

    Why America's Russia hysteria is dangerous

    The US exaggerating and obsessing about foreign threats seems quite similar to what is happening in Russia.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months