20 CEOs Failed Business Waste 27 Billion Won by Cards

It is known that 20 CEOs of insolvent enterprises supported by public fund such as Shinwon, Jindo, Kohap, Anam Constructions, have spent 2.7 billion won on golf, casino, shopping with credit card for three years since 1998.

Particularly, Korea Deposit Insurance Corporation (KDIC) concluded that 10 of them didn’t have any personal wealth when the corporation investigated personal wealth to recollect public fund. So it reflected that the investigation was too slipshod.

At 19th, PM Eum Ho-sung (Hannara), a member of National Administration Committee for Public Fund disclosed a memo “ as visiting the Board of Audit and Inspection of Korea for reading materials, I found out and confirmed this credit card contents”

According to the disclosed copy, the CEOs of the 16 insolvent companies spent 700 million won on golf, shopping, air fair etc overseas, and 2 billion in Korea with the cards in their names.

According to the disclosed materials by PM Eum, their liabilities evaluated by KDIC and other financial institutions are from 5 billion won to 8.21 billion won.

Mr Choi, CEO of Woosung Foods, has liabilities 1.3 billion won including bank guarantee for 5 billion won etc, has visited 17 foreign countries by 51 times from January 1998 after being judged ‘non wealth’. He filled in the form of departure purpose ‘tourism’ 30 times of total tours.

Mr. Park CEO of Shinwon Group, having liabilities of 62 billion won and known as ‘non wealth’, visited overseas 11 times and spent 27 million won on shopping and golf. He also spent 286 million in Korea.

PM Eum criticized them “ they didn’t manage the business by mistake, but did with intention. So they are subject to be responsible for the management” and added “their luxury life style is disclosed after concealed wealth overseas with wasting of tax. Therefore the authority concerned should investigate about their wealth completely”

Seung-Ryun Kim srkim@donga.com