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Kim Woo-jung Received 700 Million Won from French Company As an Advisor for Lore Group

Kim Woo-jung Received 700 Million Won from French Company As an Advisor for Lore Group

Posted June. 17, 2005 03:25,   


The Central Investigation Department of the Supreme Public Prosecutor’s Office (chief prosecutor: Park Young-su) took former Daewoo Group Chairman Kim Woo-jung in custody on June 16. The former tycoon was confined in the Detention House in Seoul located in Uiwang City, Gyeonggi Province.

Chief judge at the Seoul Central District Court Kim Jae-hyeop in charge of matters of warrants explained the reason for issuing a warrant for the former chairman Kim, saying, “Taking into consideration that the former chairman Kim has exerted negative influence upon the country’s economy and shared his role with those who were prosecuted earlier as accomplices, more severe punishment is expected to be administered to him, compared to their penalties.”

According to the prosecution, the former tycoon was arrested on charges of ordering his staffs to make a window dressing of 41 trillion won by fabricating its affiliates’ accounting books in 1997 and 1998, and receiving a fraudulent loan of 10 trillion won from financial institutions by using falsely-made financial statements.

In addition, the former tycoon is suspected of squirreling away foreign currency of $20 billion (approximately 25 trillion won based on then-exchange rate) overseas without reporting to financial authorities in 1997 to 1999.

After prosecuting Kim around July 5, the prosecution plans to investigate into the British Finance Center (BFC), which was the secret finance organization of Daewoo Group in London, including where the BFC fund has been used and allegations whether Kim tried to bribe politicians and officials.

Meanwhile, Kim has reportedly received a total 600 thousand euro (approximately 720 million won) by receiving an annual salary of 200 thousand euro as an advisor for French transport firm Lohr for the past three years, among which he has used 400 thousand euro as a cost for staying abroad.

An official of the prosecution said, “In November 2001, the Interpol in France notified us of the fact that Kim acquired French nationality and received treatment for his illness at a certain hospital in Germany.”

However, he added, “The prosecution did not take a special measure against Kim since South Korea didn’t conclude an extradition agreement with these countries as well as Kim has continued to move his residence from place to place in foreign countries.”