just-auto.com

UK: Daewoo Group founder contemplating suicide - BBC

By just-auto.com editorial team | 20 March 2001

The fugitive founder of the Daewoo Group is hiding in Europe and contemplating suicide because of his role in bankrupting the Korean conglomerate, the BBC internet news service said today, citing an interview with his lawyer in a South Korean magazine.

According to BBC Online, Kim Woo-Choong's lawyer, Seok Jin-Gang, told the magazine that Kim may return home after he had written his memoirs or could even take his own life.

"He is on the run not to avoid punishment but to put order in the life he has lived so far," he reportedly told the Monthly Chosun, a high profile Seoul magazine.

The 65-year-old tycoon disappeared after the Daewoo conglomerate collapsed under $US80 billion of debt in July 1999.

BBC Online said that, two weeks ago, South Korean prosecutors asked Interpol to issue an international warrant for Kim's arrest for fraud and embezzlement.

It added that the lawyer told the magazine that Kim had not been leading a luxury life abroad with embezzled money since he fled South Korea on October 11, 1999.

"These days he is staying in third class hotels and eating hamburgers for his daily meal," said Seok, adding that Kim’s bills are being picked-up by friends.

The former chairman is reportedly worried, the BBC said, that he may have a second attack of stomach cancer and the lawyer claimed he is also being treated for arteriosclerosis.

According to the BBC, there have been reported sightings of Kim in France, Switzerland, Sudan and Vietnam.

BBC Online said that Kim founded the Daewoo group in the 1960s, building up South Korea's second-largest conglomerate by taking on bankrupt state companies and relentlessly expanding abroad using borrowed cash.

The empire collapsed when he could not repay debts, leaving South Korean banks with huge unpaid loans that forced the government to extend a 20 trillion won ($US16 billion) bail-out package.

Prosecutors are collecting evidence to back charges that Kim ordered executives to inflate assets so the group could receive 10 trillion won in bank loans between 1997 and 1999, the BBC said.


To view related research reports, please follow the links below:-

IMS Corporate Profile - Daewoo

Korea's Automotive Future

Global Car Forecasts to 2005