Daewoo Industrial Development Suspected of 'Accounting Fraud'... Headquarters and Others Raided

Searches Underway at Incheon Headquarters and Seoul Branch Offices

[Asia Economy Reporter Oh Gyumin] The police conducted a search and seizure operation on Daewoo Industrial Development, which has been accused of 'accounting fraud.'

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency has been executing search warrants since the morning of the 28th at Daewoo Industrial Development's Incheon headquarters and two Seoul branch offices on charges of violating the External Audit Act and the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust).

The civic group, the Committee for the Protection of Ordinary Citizens' Livelihoods, filed a complaint in January against Daewoo Industrial Development's Chairman Lee Sang-hyung, CEO Han Jae-jun, and financial officers for violations of the External Audit Act, breach of trust, embezzlement, and tax evasion.

In the complaint, the group stated, "We received a tip regarding the intentional omission of allowance for doubtful accounts through accounting fraud by underestimating or inadequately setting the allowance for doubtful accounts," explaining the reason for the complaint.

The police conducted an investigation of the complainant in February and have since launched a full-scale investigation.

This content was produced with the assistance of AI translation services.