Prosecutors indict former Daewoo Shipbuilding CEO for fraud

The former Chief Executive Officer of Daewoo Shipbuilding & Marine Engineering (DSME), Ko Jae-ho, has been formally accused of taking part in an accounting fraud worth KRW 5.4 trillion (USD 4.6 billion).

South Korea’s prosecutors are charging Ko Jae-ho with fraud, breach of trust, and violating the Financial Investment Services and Capital Markets Act and the Act on External Audit of Stock Companies.

The former CEO, who was at the helm of the company in the period from 2012 to 2014, was called in for questioning in early July.

He is one of two key people related to the alleged accounting fraud, along with his forerunner Nam Sang-tae, who headed the shipbuilding company from 2006 to 2012. Nam Sang-tae was earlier questioned and taken into custody due to allegations related to breach of trust. He was indicted last week.

The prosecutors unveiled the accounting fraud after they raided the ailing shipbuilder’s offices on June 7. The probe also revealed that the company’s management undertook business projects without legitimate procedures.

Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to as the source.