Ex-chairman of South Korea’s Doosan Group indicted on embezzlement charges | VailDaily.com

Ex-chairman of South Korea’s Doosan Group indicted on embezzlement charges

SEOUL, South Korea – Prosecutors on Thursday indicted a business tycoon who is also a member of the International Olympic Committee on charges of embezzling company funds in a case stemming from a family row over control of South Korea’s oldest conglomerate.Park Yong-sung, former chairman of the Doosan Group, and his three brothers were charged with pocketing more than 32 billion won ($30 million) in funds of Doosan subsidiaries and other affiliate firms, the Seoul District Prosecutors’ Office announced.The brothers were also accused of involvement in accounting fraud that inflated company sales by about 283 billion won ($270 million), the prosecutors’ office said.Prosecutors, however, decided not to arrest them.Local media criticized the prosecution’s “leniency” toward the Park brothers, saying suspects in similar cases were put into pretrial detention in the past.Park, 65, is president of the International Judo Federation, a post that automatically makes him an IOC member. He also serves as the chairman of the Paris-based International Chamber of Commerce.The case grew out of a sibling feud over control of Doosan, a century-old group with 15 subsidiaries whose businesses range from beverages, foods and clothes to real estate and nuclear power plants.Park took the helm at Doosan last July after ousting his elder brother, Yong-oh, for breaking a family tradition of “joint possession and joint management” by trying unsuccessfully to take over a subsidiary that serves as Doosan’s holding company.Yong-oh immediately struck back by filing complaints with the prosecution, accusing his brothers of creating a 170 billion won ($162 million) slush fund through embezzlement and accounting fraud.Last week, Yong-sung resigned from all public posts in South Korea, including Doosan’s chairmanship. But Doosan officials said the ex-chairman has no plan to quit his IOC membership or other international posts.”There is no court ruling yet,” a Doosan spokesman said, asking not to be identified. “He said he would take responsibility if there is anything he has to take responsibility for while monitoring court decision.”

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