Prosecutors Say Kim Woo-jung Directed Company Funds and Gave Money to Family Members

The Central Investigation Department at the Supreme Public Prosecutor`s Office, which is currently investigating Kim Woo-jung, the former chairman of the Daewoo Group, on charges of fraudulent accounting, found circumstantial evidence on August 26 that suggests Kim directed funds of BFC, Daewoo Group’s overseas financial group, and gave the money to his family members, including his wife, Jeong Hee-ja.

An official at the Supreme Public Prosecutor’s Office said, “We’re deliberating on whether to include this in charges when we indict Kim on other charges.”

The Prosecutor’s Office is said to be investigating a foreigner based on the assumption that Kim managed his assets by investing in the stock market using borrowed names (title registration under a third party`s name). The foreigner under investigation is alleged to have lent the name.

Currently, Kim’s family members’ assets include the Hilton Hotel in Gyeongju, the Daewoo Hotel in Yanbian, China, and the Artsonje Museum. These assets are managed by Phil Korea Limited (formerly Daewoo Development). Kim’s wife, Jeong, holds a 9.2 percent stake and management rights of Phil Korea Limited.

jin0619@donga.com