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Doosan Family Breaking Up

Posted July. 26, 2005 03:08,   


Co-Management Philosophy under Revision-

On July 25, the Doosan Group decided to postpone the announcement of the “Doosan Way” to next year, which was originally slated for this month. The Doosan Way is a comprehensive group management philosophy and vision that the group was planning to establish by bringing together its over 100 years of experience since 1896.

One of its main content aspects was the culture of joint ownership and co-management among family members, but with the brotherly feud over group management, it seems the content cannot help but be wholly revised.

No Setback in Succession of Chairmanship-

Newly elected group chairman Park Yong-sung and vice chairman of Doosan Heavy Industry and Construction Park Yong-man went to the office as usual and spent the day preparing for the prosecution’s investigation.

Oh the other hand, ex-chairman of the group Park Yong-oh avoided any outside contact, canceling his business trip as a chairman of the Korea Baseball Organization. Park asserts that the group’s decision to appoint Park Yong-sung as new group chairman is invalid.

However, the Doosan Group rebutted the assertion by saying, “Unlike CEOs of subsidiaries, the post of group chairman can be filled by any of the organization’s primary shareholders. There is no problem with Park Yong-sung’s appointment to the post of chairman.”

Unions Urge Revelation of the Truth-

The union of Doosan Heavy Industry and Construction held a press conference at its factory in Changwon in South Gyeongsang Province and pushed for the revelation of the truth about the alleged corruption of management.

The union said, “It is noteworthy that the former group chairman disclosed corruption by himself,” adding, “The related authorities should thoroughly investigate the corruption scandal and leave no suspicions.”

The union decided to hold demonstrations in Seoul with unions of Doosan Infracore and Doosan Industrial Development Co.

Sung-Won Joo swon@donga.com