[Asia Economy Reporter Yoo Hyun-seok] Asiana Airlines has filed a 200 billion won lawsuit for damages against former Kumho Asiana Group Chairman Park Sam-gu, who was detained in the first trial on charges of unfairly supporting a personal company by mobilizing affiliates and embezzling company funds worth around 300 billion won.
According to industry and legal sources on the 19th, Asiana Airlines filed a lawsuit seeking 226.7 billion won in damages on the 13th at the Seoul Southern District Court against former Chairman Park, three former group executives, and the corporations Kumho Express and Kumho Industrial.
Former Chairman Park was indicted on charges of violating the Fair Trade Act and embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, and was sentenced to 10 years in prison and detained in court in the first trial on August 1.
He is accused of creating a special purpose company, Kumho Enterprise (now Kumho Express), which he wholly owned, and attempting to acquire shares of Kumho Industrial, the group holding company and parent company of Asiana Airlines. He is also accused of withdrawing 330 billion won from four affiliates including Kumho Terminal and using it as payment for acquiring Kumho Industrial shares held by creditors such as the Korea Development Bank.
There is also a charge that he unfairly supported Kumho Enterprise with 130.6 billion won at low interest without collateral by mobilizing nine affiliates including Asiana Airlines, thereby benefiting himself as a special related party of Kumho Enterprise. The charges also include selling 100% of Kumho Terminal shares held by Asiana Airlines to Kumho Enterprise at a low price.
The first trial court sentenced three former group executives who were indicted together to prison terms of 3 to 5 years and detained them in court. Kumho Industrial, which was charged with violating the Fair Trade Act, was fined 200 million won.
Asiana Airlines stated, "It has already been recognized by the court that serious damage occurred to Asiana Airlines and its shareholders due to the defendants in the first trial sentencing of former Chairman Park Sam-gu and others on August 17," and added, "We plan to recover the damages the company suffered as much as possible through this lawsuit."
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