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Seoul court freezes assets of ex-chief of Daewoo Shipbuilding

All Headlines 19:53 August 12, 2016

SEOUL, Aug. 12 (Yonhap) -- A Seoul court on Friday ordered to freeze the assets of a former CEO of Daewoo Shipbuilding & Marine Engineering Co., one of the country's top three shipbuilders, who has been indicted over bribery and embezzlement.

The Seoul Central District Court ordered that some 2 billion won (US$1.8 million) of Nam Sang-tae's wealth that he allegedly obtained illegally be frozen. He headed the shipyard from 2006 to 2012.

Nam was indicted in July on charges of siphoning off company assets and giving business favors to a local logistics company owned by his friend in return for money.

The decision came amid state prosecutors' widening probe into the shipyard, which is implementing self-created debt-restructuring plans in the face of a decrease in new orders caused by the protracted global economic slump.

Earlier this year, the shipyard said it had much larger losses in 2013 and 2014 than earlier reported profits, citing accounting mishaps.

The Board of Audit and Inspection, the country's state audit agency, has said the shipyard is suspected of rigging its books to hide up to 1.5 trillion won in losses during the cited period.

Prosecutors suspect that a string of irregularities continued until the current management board, despite its pledge to break away from the past and to run the company transparently.

Last week, the chief financial officer of the shipyard was called in by prosecutors for questioning on allegations that he cooked the books to cover up the company's operating losses.


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