Report: Former DSME CEO Sentenced to 10 Years over Accounting Fraud

Image Courtesy: DSME

Ko Jae-ho, the former head of the ailing South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME), has been sentenced to 10 years in prison by a lower court in Seoul over accounting fraud, Yonhap News Agency reports.

The Seoul Central District Court found Ko, who held the position of DSME’s President and CEO from 2012 to 2015, guilty of altering accounts and figures in 2013 and 2014 to inflate assets as well as of obtaining loans by using faked financial statements.

Although he was charged with accounting fraud for 2012, the court freed Ko of charges due to a lack of evidence.

Furthermore, DSME’s former vice president has been given a seven-year sentence as he was involved in the fraud case.

In July 2016, Ko was called in for questioning as part of an accounting probe into the financial reports of the shipbuilder.

Subsequently, Ko was formally accused of taking part in an accounting fraud worth KRW 5.4 trillion (USD 4.6 billion).

The newest decision by the court comes only a day after Jung Sung-leep, DSME’s President and CEO since May 2015, was interrogated by prosecutors as he has been reportedly charged with underreporting some KRW 120 billion in business losses in 2015.

DSME received around KRW 21 trillion in loans between 2013 and 2015 reportedly on the back of a higher rating achieved through fraudulent conduct.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >