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Dong Ah Manager Mentions W200 Bln Loan in Journal

Posted October. 10, 2009 07:50,   


A journal written by a Dong Ah Construction finance manager who is alleged to have embezzled 189.8 billion won (163 million U.S. dollars) mentioned a loan of 200 billion won (171.8 million dollars).

After going on the run July 8, he wrote a journal for around 15 days, saying, “Lending a loan of 200 billion won (171.8 million dollars) to a subsidiary is no different from embezzlement. Will the money contribute to the company’s growth? I am a bad guy but the company also has many problems.”

The subsidiary in question is presumed to be Dong Ah, which was taken over by the Prime Group in March last year after going bankrupt in 2001.

Dong Ah said the loan was created after Prime borrowed money from banks to acquire the builder, adding the debt was repaid with money from Dong Ah.

“Dong Ah Construction’s 2008 financial statement mentioned a loan of 200 billion won (171.8 million dollars) comprising 78 billion won (67 million dollars) of short-term lending, 109.7 billion won (94.2 million dollars) of receivables, one billion won (860,000 dollars) of uncollected revenue, and 20 billion won (17.2 million dollars) of long-term deposits,” a Dong Ah source said.

An accomplice of the finance manager apparently wrote something because he felt his fortune was taken away after Dong Ah was acquired and its capital ran out, the source added.

Prosecutors will follow the money trail to see how the embezzled funds were spent. Their probe could also be expanded if the finance manager is found to have embezzled more money than believed or if others received part of the money.

zozo@donga.com dawn@donga.com