Doosan Chairman Resigns

Park Yong-Sung, currently under investigation by prosecutors for fraud accounting, resigned from his position as the chairman of Doosan Group and the chairman of the Korea Chamber of Commerce and Industry on November 4.

Park’s younger brother, Park Yong-man, also resigned from his position as vice chairman of Doosan Group.

Park held an emergency meeting with the CEOs of Doosan’s companies at Doosan headquarters in Jung-gu, Seoul, and stated, “I would like to deeply apologize for causing problems for the company and society. I have decided to take full responsibility for my actions and resign from the management position and all public office.”

He also said to the CEOs: “I request that you utilize all of the Doosan Group’s capabilities and establish a new, unprecedented, innovative, and advanced corporate governance structure.” Park also notified the Korea Chamber of Commerce and Industry of his resignation as chairman.

Park became the 17th chairman of the Korea Chamber of Commerce in May 2000, and was reappointed in March 2003. His term would have expired in March 2006.

The Park brothers have been under investigation for false accounting and illegal funds. Since the court rulings will come down by early next week, their resignations were handed in at this time so that they would not affect the company.

During the emergency meeting, the Doosan Group formed an emergency management committee with the vice chairman of the Doosan Corporation, Yoo Byung-taek, as its head.

Young-Hae Choi Sung-Won Joo yhchoi65@donga.com swon@donga.com