Prosecutors Decide Not to Indict Former Kumho Chairman Park Sam-gu for Creating Prime Land Using Company Funds

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Park Sam-gu, former chairman of Kumho Asiana Group, who was accused of using company funds to develop a burial ground area around his ancestral gravesite as a prime location, was cleared of charges by the prosecution.

On the 17th, according to the Anti-Corruption Investigation Division of the Gwangju District Prosecutors' Office (Chief Prosecutor Kim Hyung-rok), the prosecution decided not to indict former chairman Park, who was suspected of breach of trust. Five others, including one senior executive of the group, one former executive, two subsidiary presidents, and one subsidiary employee, were given a suspension of indictment.

The prosecution considered that although the executives and employees engaged in actions not aligned with the company's business objectives, during the investigation they fully recovered the losses by purchasing land from the subsidiaries, and since no actual damage occurred, they were given suspension of indictment.

They are accused of purchasing and developing two quarries opposite the burial ground of former chairman Park's family in Naju, Jeollanam-do, using 1.5 billion won of company funds from the summer of 2013 to the end of 2014.

One subsidiary responsible for managing Kumho Group buildings purchased a quarry used as a quarry site in 2013 for about 1.16 billion won. Although the subsidiary acquired the quarry for aggregate production purposes, no related sales occurred, and they spent several hundred million won filling the ridges and planting landscaping trees.

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