Former Haitai chairman charged

The Seoul District Prosecutor`s Office has charged the former chairman of Haitai Group Park Kun-Bae with embezzlement and conspiracy.

According to the prosecutors, following the insolvency of Haitai Group in November 1997, the group sold its employee training facility in Gwangju for 19 billion won to Hyundai Marine and Fire Insurance Co. Along with the sale, Park allegedly fabricated a receipt for 100 million won for the sale of furniture to a furniture supplier while in actuality receiving 2 billion won for the sale of furniture to Hyundai. The 1.9 billion won of unreported sales income was diverted to a personal slush fund rather than going toward saving the company by reducing its debt.