On June 15, Daewoo Shipbuilding and Marine Engineering Co., in a disclosure notice, reportedly confirmed about the news reports that a former employee had embezzled a total of 18 billion won($15.33m) and that the suspect is currently in custody of the authorities.
The company said that it filed a criminal complaint against the suspect in January over the alleged embezzlement of 6 billion won, and that evidence implicating the suspect in embezzlement of a further 12 billion won was submitted in March.
Following the initial news report, Korea Exchange issued a trading ban on DSME, as of 8.14 a.m., and the ban was lifted at 11.15 a.m. after the company posted the notice.
The Board of Audit and Inspection of Korea on Wednesday said DSME awarded 6.5 billion won in performance bonuses to high-ranking employees, including the CEO, as well as 198.4 billion won to its employees in the two years, based on wrongful calculations.
In the meantime, DSME’s troubles continue. The prosecutor’s’ special corruption investigation team has requested an arrest warrant for a CEO of DSME’s business partner. The chief executive, who was identified only by his family name Chung, runs a logistics company suspected of receiving numerous kickbacks from former DSME CEO Nam Sang-tae, who is a college friend. The associate is accused of embezzlement as well as tampering with evidence.
Korea Exchange also suspended the shipbuilder’s stock exchange temporarily on Wednesday until the shipbuilder explains reports of a former employee’s embezzlement. Daewoo later said in a statement it has filed lawsuits against the employee.
Trading resumed and the stock closed down 5 percent.
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Sources & References: The Korea Herald, Korea Joongang Daily
