Prosecutors Conduct Search and Seizure at Daewoo Shipbuilding & Marine Engineering Construction on Allegations of Chairman's Corruption

[Asia Economy Reporter Hwang Seoyul] The Joint Investigation Team for Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office (Chief Dan Seonghan) announced on the 10th that it conducted a search and seizure at the office of Daewoo Shipbuilding & Marine Engineering Construction located in T Tower, Jung-gu, Seoul, in connection with allegations of corruption involving Kim Yongbin, chairman of Daewoo Shipbuilding & Marine Engineering Construction.

[Image source=Yonhap News]

The prosecutors have been investigating allegations of violations of the Capital Markets Act, embezzlement, and breach of trust involving Chairman Kim and others during the management of Korea Corporation (currently MPC Plus), a call center operation outsourcing company. Kim is known to be the actual owner of Korea Corporation.

Kim is suspected of paying the capital increase funds during Korea Corporation's paid-in capital increase in 2018 with borrowed money, then withdrawing the funds after the capital increase was completed to repay the loan. He is also accused of obtaining undisclosed important information just before the suspension of Korea Corporation's stock trading in March 2020 and disposing of his shares to avoid losses.

Minority shareholders of Korea Corporation, a KOSDAQ-listed company, filed a complaint with the prosecutors in February last year against Chairman Kim and others for violations of the Capital Markets Act and breach of trust. Korea Corporation received a delisting decision from the Korea Exchange in January last year due to accumulated auditor's refusal opinions. However, Korea Corporation filed for an injunction to suspend the delisting effect, resulting in a hold on procedures such as orderly liquidation, and the stock remains suspended from trading.