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Daewoo Shipbuilding spent 520 mln won on trips in private jet: lawmaker

All Headlines 11:01 September 07, 2016

SEOUL, Sept. 7 (Yonhap) -- Financially troubled Daewoo Shipbuilding & Marine Engineering Co. spent around 520 million won (US$475,300) on private jet flights for its former head despite management struggles, an opposition lawmaker said Wednesday, fueling criticism of how the shipyard was run.

According to the data compiled by Rep. Kim Hae-young of the main opposition Minjoo Party of Korea, Nam Sang-tae, the former head of the company, went on four overseas trips between 2011 and 2012 using private jets.

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.

Between 2013 and 2015, the company also spent 180 million won in purchasing 8,500 bottles of wine from one of its affiliates.

"While the government injected 7 trillion won worth of taxes to save the company, Nam as well as other executives of Daewoo took trips and purchased gifts," Kim said, criticizing the moral hazard of the company.

Daewoo Shipbuilding, which posted a massive net loss last year, is also currently undergoing a probe for alleged accounting fraud.

Seoul-based headquarters of Daewoo Shipbuilding & Marine Engineering Co. (Yonhap)


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