Kang Deok-su Loses Again in STX Heavy Industries Appeal, Ordered to Pay 4.2 Billion Won
[Asia Economy Reporter Kim Daehyun] STX Heavy Industries won the appeal in the damages claim lawsuit filed regarding the breach of trust by former STX Group Chairman Kang Deok-su and other executives.
On the 6th, the Civil Division 16 of the Seoul High Court (Presiding Judges Cha Mun-ho, Lee Yang-hee, Kim Kyung-ae) ruled in favor of STX Heavy Industries in the appeal trial of the damages claim lawsuit filed against former Chairman Kang, former STX CEO Byun Mo, and former Executive Director Lee, just as in the first trial.
The court ordered the three former executives, including former Chairman Kang, to pay approximately 4.27 billion KRW to STX Heavy Industries, and former CEO Byun and former Executive Director Lee to bear up to approximately 1.28 billion KRW of the total compensation amount.
Previously, former Chairman Kang was tried on charges of embezzling a total of 55.7 billion KRW of company funds and improperly supporting his personal company with approximately 284 billion KRW of affiliate funds, and in 2020, the Supreme Court confirmed a sentence of three years imprisonment with a four-year probation. Former CEO Byun and former Executive Director Lee also had their suspended prison sentences confirmed. The amount of embezzlement and breach of trust recognized as guilty by the Supreme Court totals approximately 91 billion KRW.
STX Heavy Industries filed a civil lawsuit in 2016, claiming damages because former Chairman Kang and others caused the company to purchase bonds of STX Construction, which had no possibility of repayment, without any collateral measures.
The first trial ruled, "The defendants claim that STX Heavy Industries did not actually suffer damages due to the breach of trust, but it is reasonable to consider that STX Heavy Industries suffered actual damages immediately upon the breach of trust."
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Meanwhile, former Chairman Kang was granted a special pardon on August 15 Liberation Day this year.
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