The founder and former chairman of collapsed conglomerate Daewoo was sent to prison for 10 years for a range of charges including embezzlement and accounting fraud in a Seoul court on Tuesday, The Associated Press (AP) reported.
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The Seoul Central District Court reportedly said it also ordered Kim Woo-choong, 69, to forfeit more than 21 trillion won ($US22bn) and pay a fine of 10m won ($10,600).
AP noted that Kim was indicted in June last year on charges of multi-trillion won accounting fraud, illegal financing and diverting funds out of the country. He was also accused of embezzlement and breach of trust.
A severe sentence was “unavoidable” since Kim was engaged in activities that contributed to Daewoo Group’s bankruptcy and hurt South Korea’s image abroad, the court reportedly said in its ruling.
“It is doubtful whether (Kim) is truly repentant as he tries to dodge the responsibility and justify his actions,” the ruling said.
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By GlobalDataIt wasn’t immediately known whether Kim would appeal the ruling, AP added.
The report said that Kim was found guilty of the charges, including over 20 trillion won in accounting fraud, 9.8 trillion won worth of illegal financing, and diverting 19 trillion won out of the country and was also found to have embezzled $US100m.
According to The Associated Press, Kim started as a textile salesman in 1967, building an empire that came to stand among the largest conglomerates, or “chaebol,” in South Korea.
Daewoo collapsed under massive debts in the wake of the 1997-98 Asian financial crisis, when the South Korean government was forced to accept a $58bn International Monetary Fund bailout, AP added.
Parts of Daewoo were broken up and sold, with General Motors acquiring a major stake in Daewoo Motor to create GM Daewoo in 2002.
Under GM, the range of Daewoo vehicles has been redesigned and expanded greatly. The brand lives on in Korea, but most models are now exported under the Chevrolet brand, with some sold as Suzuki models in North America and badged Holden in Australia.
Kim fled the country in 1999, living mostly in France, until returning to South Korea last June to face charges, AP noted.
The news agency said the court ruling was less severe than what prosecutors had sought. Earlier this month, prosecutors requested the court order Kim to serve 15 years in prison and forfeit 23.4 trillion won ($24.8bn).
