32 People Including Chang Chi-Hyuk, Former CEO of Kohap Are Accused for Misappropriation of 411.8 Billion Won

Korea Deposit Insurance Corporation announced that 140 billion won of the hidden properties of Kim Woo-Jung, former CEO of Daewoo group, were found out and the corporation reserved the properties for debts.

KDIC also announced to file a lawsuit against 32 former or incumbent staffs of Kohap Co. Ltd. including former CEO Chang Chi-Hyuk, who turned out to damage to the extent of 411.8 billion won to Kohap and the creditor banking organization by misappropriation of money.

It is the first time for KDIC to claim for compensation to the large stock holders and CEOs of an insolvent business by investigating the hidden properties.

Kim Chun-Soo, director of KDIC, remarked that KDIC will ``complete the investigation on the hidden properties of Mr. Kim by the end of this year and will confiscate the whole properties. For 32 executives and CEOs of Kohap, KDIC will file a lawsuit by the creditor financial organizations and also lodge a complain against the employees who had embezzled 400 million won of the company`s property.``

According to KDIC, the hidden properties of Kim Woo-Jung are 44.3 million dollars for the purchase of Daewoo Information System in June 1999, 81.4 percent share of the Adonis Gold Club under the names of his wife and two sons (estimated as17.2 billion won), land in Bangbae-dong under the name of his son and 225,000 stocks of Isu Chemistry in the name of his daughter.

However, attorney Seok Jin-Gang, representative of Kim Woo-Jung, asserted that KDIC ``unreasonably exaggerated well-known facts to shame [my client].`` pointing out that the land and the Adonis Golf Club need to be judged by the court in terms of the donation process and the share of Isu Chemistry was legally donated to her when she married 10 years ago.

KDIC also claimed that Kohap Co. Ltd. damaged 232 billion won to the company and 179.8 billion won to the financial organization by making a false financial statement and illegally issuing corporation bonds. KDIC added that Mr. Chang embezzled 3 billion won for private use and bought a forest land under the name of his wife and daughter.

hcs@donga.com