Daewoo Founder Receives 10-Year Prison Sentence for Fraud and Embezzlement
SEOUL, South Korea – Kim Woo-Choong, 69, the founder and former chairman of the now-defunct Daewoo group, was sentenced to 10 years in prison Tuesday by the Seoul Central District Court. The conviction stems from charges of accounting fraud, illegal financing, embezzlement, and breach of trust related to the conglomerate’s collapse.
In addition to the prison sentence, the court ordered Kim to forfeit over 21 trillion won (approximately $22 billion) and pay a fine of 10 million won (roughly $10,600).
Kim was indicted in June 2023, facing accusations of orchestrating over 20 trillion won in accounting fraud, securing 9.8 trillion won in illicit financing, and diverting 19 trillion won overseas. He was also found guilty of embezzling $100 million.
The court stated a harsh sentence was necessary due to Kim’s role in Daewoo’s bankruptcy and the damage inflicted upon South Korea’s international reputation. The ruling also expressed doubt regarding Kim’s genuine remorse, noting his attempts to deflect responsibility and justify his actions.
Kim built Daewoo from a small textile business established in 1967 into one of South Korea’s largest chaebol (conglomerates). However, the company succumbed to massive debt following the 1997-98 asian financial crisis, ultimately requiring a $58 billion bailout from the International Monetary Fund.
Following Daewoo’s downfall, parts of the company were sold off. In 2002, General motors acquired a significant stake in Daewoo motor, forming GM Daewoo.
Kim fled South Korea in 1999 and resided primarily in france before returning to face charges last June.
The sentence handed down by the court was less severe than the 15-year prison term and 23.4 trillion won ($24.8 billion) forfeiture requested by prosecutors earlier this month. It remains unclear whether Kim intends to appeal the ruling.
