Forklift News - Doosan Group ex-chairman indicted

Park Yong-sung/ photo by The Korea Times

Former Doosan Group chairman Park Yong-sung and his three brothers have been indicted for allegedly embezzling 32.6 billion won (USD31.5 million) in company funds over 10 years.

The Korea Times reported Park and two of his brothers, Yong-oh and Yong-maan, are suspected of manipulating Doosan Industrial Development and Donghyun Engineering from 1995 until recently to raise 28.6 billion won (USD27.6 million) in slush funds.

Park Yong-wook, another brother, is charged with embezzling 3.98 billion won (USD3.85 million) from the group’s affiliate Nefs Co from 1998.

However, the prosecution decided not to detain the four brothers along with 10 other Doosan executives.

Investigators said arresting the former chairman and other key family members would have a negative impact on South Korea’s international image and credibility and destabilise the Doosan Group’s business operations.

Rep Shim Sang-jung, of the Democratic Labour Party, has criticised the prosecution’s decision.

"Equity before the law should be preserved and conglomerates should bring management transparency up to global standards to drive out any irregularities once and for all," she said.

Park delivered his resignation from Doosan at an emergency presidential board meeting on November 4.

In an announcement on Doosan's website last week, Park said: "I deeply apologise for Doosan’s recent situation that developed into a social controversy. I assume full responsibility and hereby resign from the management of Doosan and all public positions."

After Doosan acquired a controlling stake in forklift manufacturer Doosan Infracore, formerly known as Daewoo Heavy Industries & Machinery, Park assumed the position of Doosan Infracore chairman (Forkliftaction.com News #210).

A source in Doosan Infracore said Park had resigned from his position as Doosan Infracore chairman and an emergency management committee had been formed to control all Doosan Group companies.

"At this moment there is no other person taking over the position," he said. "This will have no influence in our business and we believe all business units including our forklift business will continue in its direction of growth according to management strategies and projects launched after Doosan took over from the former company on April 29, 2005."

He affirmed his confidence in Doosan Infracore's management by pointing to the company's stock price.

"It was 8,160 won (USD7.90) in April 2005 before the Doosan acquisition and it rose up to 12,950 (USD12.50) won in October. The stock price is now at 14,650 won (USD14.13)."

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