Daewoo Industrial Development "Normal Operations Difficult Due to Investigation of Accounting Fraud Allegations"

Daewoo Industrial Development, which is under suspicion of accounting fraud, stated on the 18th that "the company is facing a serious crisis due to successive raids and investigations."

[Image source=Yonhap News]

Daewoo Industrial Development released a statement on the same day, saying, "Due to investigations related to accounting fraud allegations that have continued for over a year, as well as successive raids by the Corruption Investigation Office for High-ranking Officials and the Seoul Central District Prosecutors' Office, about 400 employees of Daewoo Industrial Development are experiencing significant difficulties in carrying out normal business operations."

It added, "Although a comprehensive investigation was conducted following a citizen group's accusation in January last year, it was determined that Chairman Lee Sang-young was not involved in accounting fraud, and the case was dismissed. In February this year, arrest warrants were requested against the company's management on charges of embezzlement and breach of trust, but the court rejected the warrants, resulting in non-custodial prosecution."

Furthermore, it stated, "Amid an unstable construction market causing difficulties for the company, its affiliates, and small-scale partner companies, the ongoing investigations and repeated raids have inflicted irreparable and substantial damage on the company. We earnestly request a swift conclusion to the investigation to prevent further harm to the company’s employees, affiliates, and numerous partner companies."

Daewoo Industrial Development also said, "We will fully cooperate with the investigation to quickly uncover the truth and make every effort to restore normalcy to the company."

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