Prosecutors question Daewoo shipyard's financial chief

By Park Sae-jin Posted : August 5, 2016, 12:36 Updated : August 5, 2016, 12:36

[Courtesy of Daewoo shipyard ]


South Korean prosecutors questioned the chief financial officer of Daewoo Shipbuilding & Marine Engineering Co. Friday over allegations he has been involved in an accounting fraud.

Kim Youl-jung, 58, is suspected of covering up last year's operating losses estimated at 120 billion won (108 million US dollars ).

Former and incumbent Daewoo executives have been accused of manipulating financial statements to cover up huge losses. Last week former CEO Ko Jae-ho was indicted for overreporting some 5.7 trillion won in net assets between 2012 and 2014.

State auditors have accused the shipyard of indulging in window dressing worth 1.5 trillion won in 2013 and 2014. They said the fraud was aimed at securing a bailout fund and hefty loans from creditors.

Daewoo Shipbuilding, one of South Korea's three top shipyards all under creditor-led restructuring, has sucked more than seven trillion won in special bank loans and taxpayers' money since 2000. Last year, the shipyard posted a record net loss of 5.13 trillion won, compared with a profit of 33 billion won a year earlier.

Aju News Lim Chang-won = cwlim34@ajunewscom.
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