Ex-Daewoo Shipbuilding chief additionally charged with breach of trust, bribery

Elizabeth Rhee, Jan. 24, 2017, 10 a.m.


A former CEO of cash-strapped Daewoo Shipbuilding & Marine Engineering Co. was additionally charged with breach of trust and bribery on suspicions of inflicting some tens of billions of won in losses to the shipyard, prosecutors said Tuesday.

The prosecution accused Nam Sang-tae, 66, of allegedly causing some 26.3 billion won ($25.5 million) in losses to the company by making business decisions based on his ties to certain acquaintances. Nam, who headed the company from 2006 to 2012, is currently in custody and standing trial on charges of bribery. 

Prosecutors additionally charged him with bribery for allegedly giving kickbacks to acquaintances of Kang Man-soo, former head of the state-run Korea Development Bank. The KDB is the largest shareholder of the financially troubled shipbuilder. 

Kang was in office as the chief of the state-run bank from 2011 to 2013, after serving as the country's finance minister from 2008 to 2009 under the Lee Myung-bak administration. Kang is also standing trial on a string of corruption charges. He has been detained since last month.

The shipbuilding industry, once regarded as the backbone of the country's economic growth and job creation, has been reeling from mounting losses caused by an industry-wide slump and increased costs.

The country's top three shipyards suffered a combined operating loss of 8.5 trillion won in 2015 due largely to increased costs stemming from a delay in the construction of offshore facilities and the industry-wide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion won loss.

The shipbuilders have drawn up sweeping self-rescue programs worth some 11 trillion won in a desperate bid to overcome a protracted slump and mounting losses. (Yonhap)

comments powered by Disqus