District Prosecutors Office News

The chief executive of struggling Korean shipbuilder Daewoo was questioned by state prosecutors on Tuesday over allegations that the yard tried to cover a major deficit in 2015 by underreporting losses. According to a report in Yonhap, Jung Sung-leep, 66, appeared before the Seoul Central District Prosecutors' Office as a suspect on charges of violating the Act on External Audit of Stock Companies. Jung Sung-leep, DSME’s President and CEO since May 2015, has been reportedly charged with underreporting some KRW 120 billion (USD 101 million) in business losses in 2015. Ko Jae-ho, who headed the company from 2012 to 2015, is awaiting a court's ruling Wednesday over allegations he overreported some 5.7 trillion won in net assets between 2012 and 2014.

The Seoul Southern District Prosecutors’ Office said Choi Eun-young,  the former chairman and former CEO of Hanjin Shipping, has been indicted on charges of insider trading. According to Yonhap, the prosecution alleged that Choi sold stock in Hanjin when she learned of the carrier's impending collapse, several days before the firm applied for a restructuring program and made its situation known to the public. The stock sale was completed a few days before Hanjin Shipping, long troubled by an industry slump and ballooning losses, decided to apply for a creditor-led debt revamp and a self-rescue program. Hanjin, one of the world’s leading container carriers, filed for court receivership in late August amid multi-billion-dollar debts.

The Seoul Central District Prosecutors’ Office summoned  the chief financial officer (CFO) of Daewoo Shipbuilding & Marine Engineering Co. (DSME ) today (Friday) over his alleged involvement in the financially troubled company’s accounting fraud. As per a report in Korea Herald, the Seoul prosecutors called Kim Youl-jung, 58, for questioning on allegations that he cooked the books to cover up the company's operating losses. The special investigation team said Kim is being grilled over accusations that the shipbuilder underreported some 120 billion won ($107 million) in business losses last year. The shipbuilder underreported some 120 billion won (US$107 million) in business losses last year…

Prosecutors on Sunday sought the arrest warrant of the ex-chairman of Hanjin Shipping, who has been hit with insider trading charges, says Yonhap. Choi Eun-young is specifically charged with violating the Financial Investment Services and Capital Markets Act, according to prosecutors probing the case at the Seoul Southern District Prosecutors' Office. The 54-year-old and her two daughters allegedly sold their stockholding in the Korean line for about  about 1 billion won (US$857,632) in losses days ahead of the company announcing a resturcuting, with prosectors convinced the sell off came from a tip off from sources within the shipping line. Choi denied the charges during a questioning by prosecutors last week, saying she just sold the stocks to pay back her debts.

South Korea's government and central bank will create an 11 trillion won ($9.50 billion) fund to support two state-run banks most exposed to the country's struggling shipping and shipbuilding firms. "Our key industries like shipping and shipbuilding are being aggressively caught up by countries like China and management conditions have worsened due to weak global trade," Finance Minister Yoo Il-ho said in a speech announcing the corporate restructuring plans on Wednesday. South…

Korea’s big three shipbuilders are committed to making a fresh start with regard to business ethics in 2014 after getting hit with bribery scandals in 2013, reports the Korea Joong Ang Daily. According to the Korea Joong Ang Daily,  Hyundai Heavy Industries, the nation’s largest ship manufacturer, held an “ethics management resolution” event recently at its headquarters in Ulsan during a management strategy seminar. HHI Chairman Lee Jae-sung and more than 150 high-ranking executives, including CEOs from affiliates, signed a pledge to pursue ethical management.