Go to contents

Doosan Fires Former Chairman Park Yong-Oh

Posted July. 23, 2005 03:11,   


Due to former Doosan chairman Park Yong-Oh’s accusations that his brothers embezzled money to set up a secret fund, Doosan group is busily trying to put him out of office.

Prosecutors decided to set up an investigative team to look into the allegations of secret funds and false accounting.

Doosan Corp and Doosan Industrial Development each held an emergency board meeting at the Doosan Tower in Euljiro, Jung-gu, on July 22 and agreed to expel Park from the chief executive officer.

Doosan Industrial Development also expelled Park’s second son, Park Joong-won from his position as managing director.

The board meetings were conducted without former chairman Park present, and the move to expel him from his position will be finalized at the special stockholder’s meeting in two weeks’ time.

Doosan Group’s new chairman, Park Yong-sung, held a press conference at the Doosan Tower at 3:00 p.m. and stated, “This incident is not a feud for management control. He tried to take control by illegal means and failed, but his greed prevailed. This is an attempted takeover of Doosan Industrial Development.”

Chairman Park added, “During a family meeting in May, former chairman Park asked that the Doosan Industrial Development’s share of Doosan Corp be transferred to a person of his choice and the company separated from the group as an affiliate company. When his request was denied, he threatened us with false accusations.”

On secret fund allegations, Chairman Park stated, “That is a bare-faced lie. I will agree to any kind of investigation by prosecutors and take responsibility for whatever they find.”

As soon as an investigative team is set up, the prosecution plans to summon the petitioners, former chairman Park and managing director Sohn of Doosan Industrial Development, as witnesses. They submitted a 15-page petition.

The prosecution’s position is that since this information concerns internal corruption, they are looking for measures to continue the investigation even if the allegations are dismissed.

The Minister of Justice, Chun Jung-bae, stated that “We plan to investigate this case fairly and thoroughly, with no mercy.”

Joong-Hyun Park sanjuck@donga.com jin0619@donga.com