Korean Prosecutors Raid Home of Ferry's Owner

Joseph Keefe
Wednesday, April 23, 2014

Prosecutors investigating the fatal sinking of a South Korean ferry have raided the home of Yoo Byung-un, the head of a family that owns the Chonghaejin Marine Co. Ltd, the company that operated the ship.

Kim Hoe-Jong, a prosecutor on the case, said Wednesday's raid was part of a probe into "overall corruption in management".

Of the 476 passengers and crew on board the Sewol, 339 were children and teachers on a high school outing to the holiday island of Jeju. Only 174 people have been rescued and the remainder are presumed to have drowned.

The confirmed death toll on Wednesday was 150.

South Korean prosecutors and agencies tend to adopt a blanket approach in raids, rather than targeting specific lines of inquiry.

They raided the home of one of Yoo's sons on Wednesday, but found that he was away and the door was locked and they could not enter the house. They also raided an office in the premises of a branch of a church that Yoo founded.

Financial regulators are also investigating whether the wider conglomerate group illegally used overseas borrowings.

No one from the family or the businesses they own was available for comment.

The finances of Chonghaejin and its complex share structure have come into the spotlight after the ferry disaster, which has shocked South Korea. Yoo was jailed for fraud for four years in the early 1990s.

There is no suggestion that the past financial difficulties in any way contributed to the ferry sinking. Yoo's conviction for fraud in 1992 showed that funds from members of the church he founded, the Evangelical Baptist Church of Korea, were used in his businesses.

Around 1976, Yoo acquired a financially troubled trading company called Samwo Trading in a bid to create jobs for church members and increase their wealth, the transcript of the court case finding said.

The company became deeply integrated with the church. Many of its church members were equity stakeholders of the company and some were even hired by the company, while church assets including its main building were offered as collateral to secure Samwo's finance, it said.

In 1982, when Samwo's cash requirement was at its height, a colluding employee of Yoo even urged its church members to borrow from their acquaintances to finance Yoo's business, the court findings said.

Yoo is not known to have a stake in Chonghaejin or to have any direct management control of the company.

Yoo's two sons, Yoo Dae-kyun and Yoo Hyuck-ki, have direct or indirect stakes in nine business affiliates that include the Sewol operator Chonghaejin, shipbuilder Chonhaiji and cosmetics firm Dapanda Co, through an investment vehicle I-One-I, according to data from South Korea's Financial Supervisory Service.


By Miyoung Kim

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Exxon: U.S. to Allow Wind Down Ops in Russian Arctic

U.S. oil major Exxon Mobil said on Friday the U.S. Treasury Department granted it a license to wind down operations on a drilling well in the Kara Sea in the Russian Arctic.

Sulzer Shareholder has 5 pct Dresser-Rand Stake

Russian billionaire Viktor Vekselberg's Swiss investment firm Renova Group said on Friday it had a 4.99 percent stake in U.S.-based Dresser-Rand, which might become the object of a takeover battle.

Russia: Exxon Still Drilling in its Arctic

ExxonMobil is still drilling in the Russian Arctic, a Russian minister said on Friday, in move that if confirmed will anger Washington after the U.S. administration

Finance

Exxon: U.S. to Allow Wind Down Ops in Russian Arctic

U.S. oil major Exxon Mobil said on Friday the U.S. Treasury Department granted it a license to wind down operations on a drilling well in the Kara Sea in the Russian Arctic.

Sulzer Shareholder has 5 pct Dresser-Rand Stake

Russian billionaire Viktor Vekselberg's Swiss investment firm Renova Group said on Friday it had a 4.99 percent stake in U.S.-based Dresser-Rand, which might become the object of a takeover battle.

Source: Siemens Offering $6.1 bln for Dresser Rand

Germany's Siemens plans to offer more than $6.1 billion, or $80 per share, for U.S. compressor and turbine maker Dresser-Rand, Germany's Manager Magazin said on Friday.

Salvage

TITAN Salvage Receives NAMEPA Award

The North American Marine Environment Protection Association (NAMEPA) announced earlier this month that Houston-based TITAN Salvage, a subsidiary of Crowley Maritime Corp.

S. Korea Navy Chief Quizzed About Salvage Ship Absence

The state audit agency has interrogated the chief of the Navy over a faulty Navy salvage ship that failed to participate in the national rescue operation for the

Arctic Wreck Found after 169 Years

After more than 169 years, Canadian researchers discovered one of the two ships from the doomed Arctic expedition of Sir John Franklin, cracking one of the largest mysteries in sea exploration.

Casualties

USCG in Search of Missing Man in Lake Michigan

The Coast Guard is searching for a man who went missing on Lake Michigan, Tuesday. Missing is 48-year-old Joseph Kiehm from Milwaukee. Kiehm was last seen aboard his 26-foot white sailboat,

S. Korea Navy Chief Quizzed About Salvage Ship Absence

The state audit agency has interrogated the chief of the Navy over a faulty Navy salvage ship that failed to participate in the national rescue operation for the

Arctic Wreck Found after 169 Years

After more than 169 years, Canadian researchers discovered one of the two ships from the doomed Arctic expedition of Sir John Franklin, cracking one of the largest mysteries in sea exploration.

Government Update

Exxon: U.S. to Allow Wind Down Ops in Russian Arctic

U.S. oil major Exxon Mobil said on Friday the U.S. Treasury Department granted it a license to wind down operations on a drilling well in the Kara Sea in the Russian Arctic.

Sulzer Shareholder has 5 pct Dresser-Rand Stake

Russian billionaire Viktor Vekselberg's Swiss investment firm Renova Group said on Friday it had a 4.99 percent stake in U.S.-based Dresser-Rand, which might become the object of a takeover battle.

Russia: Exxon Still Drilling in its Arctic

ExxonMobil is still drilling in the Russian Arctic, a Russian minister said on Friday, in move that if confirmed will anger Washington after the U.S. administration

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Pipelines Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0923 sec (11 req/sec)