The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    IU says she was excited to share screen with Park Seo-joon in 'Dream'

  • 3

    BLACKPINK, TXT, Stray Kids: K-pop stars headline international music festivals

  • 5

    INTERVIEWForeign-born entertainers seek to revolutionize local industry

  • 7

    College students turn to 1,000 won breakfast to beat inflation

  • 9

    Seventeen to drop new EP next month

  • 11

    Chun Woo-won apologizes to Gwangju victims, calls grandfather 'criminal'

  • 13

    Koreans warned against making inappropriate videos in Thailand

  • 15

    BTS Jimin breaks record for K-pop soloist with 'Face'

  • 17

    South Korea nominates new ambassador to US

  • 19

    SM Entertainment founder looks to future as company appoints new management

  • 2

    Children, pregnant women executed, tortured in North Korea: report

  • 4

    Korea to scrap customs form for travelers without dutiable goods

  • 6

    NewJeans, Apple join hands to bring immersive audio experience

  • 8

    Rare Joseon-era map returns home from Japan

  • 10

    Korean aesthetics, spirit live on at Gyeongbok Palace

  • 12

    Celebrity chef Paik Jong-won takes his business skills to next level with 'The Genius Paik'

  • 14

    Carmakers unveil latest models at Seoul Mobility Show

  • 16

    'Me': BLACKPINK's Jisoo off to smooth start as solo artist

  • 18

    Japanese top visitors to Korea in 2023 as tourism rebounds

  • 20

    Gwangju's popular Alleyway restaurant resurrects

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Sat, April 1, 2023 | 20:45
-------------------------
Prosecution probes fraud allegations at Keangnam
Posted : 2015-03-29 16:49
Updated : 2015-03-29 18:25
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Kim Rahn

Prosecutors are investigating allegations of fraudulent accounting at Keangnam Enterprises, a construction company at the center of a probe into the Lee Myung-bak administration's failed "energy diplomacy."

Prosecutors suspect that the company fabricated its financial situation while it was in the debt workout program.

They believe the company did this in order to qualify for the government's special loans for overseas energy development projects.

Sources at Seoul Central District Prosecutors'Office said Sunday that Keangnam's credit rating when the loans were issued was suspicious.

According to regulations, companies eligible for the special loans should have a CCC credit rating, meaning there is a possibility that a company could default on repayments.

But a credit rating agency rated Keangnam's financial status at BBB-, meaning it had a strong ability to repay debts, but with the possibility that this could diminish.

Using this rating, Keangnam obtained government loans for several projects, including $10 million to develop an oilfield in Russia and a gas field in Kazakhstan. Both projects failed.

When parts of the loan for the projects were provided, Keangnam was under a debt-workout program from January 2009 to May 2011.

"Companies under a workout program undergo financial restructuring due to a high possibility of default," a prosecutor said. "But during its workout period, Keangnam obtained a credit rating of BBB- or higher every year and received the loan."

Prosecutors recently questioned former and incumbent officials from the Korea National Oil Corp. in charge of the special loans and those from Keangnam in charge of accounting about the suspicious loans.

"We don't rule out the possibility that Keangnam bribed the credit rating agency to get a good assessment," the prosecutor said. "We are also looking into whether the company cooked the account books through continuous accounting fraud."

Prosecutors are also investigating if Keangnam Chairman Sung Woan-jong, a former ruling Saenuri Party lawmaker and a close confidant to former President Lee Myung-bak, exercised influence on creditor banks and financial authorities.

Previously, the Board of Audit and Inspection was tipped off that the Financial Supervisory Service told officials at Keangnam's creditor banks to grant favors to the company when it applied for another workout in October 2013.

"The creditors promised to inject 630 billion won into the company at that time," the prosecutors said. "We are investigating whether corruption was involved in their decisions."

The prosecution is also investigating the company's alleged creation of a slush fund worth about 10 billion won by embezzling part of the loan.

Emailrahnita@koreatimes.co.kr Article ListMore articles by this reporter
 
Top 10 Stories
1Chun Woo-won apologizes to Gwangju victims, calls grandfather 'criminal' Chun Woo-won apologizes to Gwangju victims, calls grandfather 'criminal'
2Koreans warned against making inappropriate videos in Thailand Koreans warned against making inappropriate videos in Thailand
3Gwangju's popular Alleyway restaurant resurrectsGwangju's popular Alleyway restaurant resurrects
4Ambassador offers taste of Ghana to Korea Ambassador offers taste of Ghana to Korea
5[INTERVIEW] North Korean defectors bear brunt of remittance scams INTERVIEWNorth Korean defectors bear brunt of remittance scams
6Korea ready to greet BIE inspection team Korea ready to greet BIE inspection team
7Gimpo airport to launch care service for dogs Gimpo airport to launch care service for dogs
8Yoon gov't disputes Japanese media's claims about summit Yoon gov't disputes Japanese media's claims about summit
9Regulators urge financial groups to minimize interest rate hikes Regulators urge financial groups to minimize interest rate hikes
10Mirae Asset, SK Telecom team up for security token businessMirae Asset, SK Telecom team up for security token business
Top 5 Entertainment News
1IU says she was excited to share screen with Park Seo-joon in 'Dream' IU says she was excited to share screen with Park Seo-joon in 'Dream'
2BLACKPINK, TXT, Stray Kids: K-pop stars headline international music festivalsBLACKPINK, TXT, Stray Kids: K-pop stars headline international music festivals
3[INTERVIEW] Foreign-born entertainers seek to revolutionize local industry INTERVIEWForeign-born entertainers seek to revolutionize local industry
4NewJeans, Apple join hands to bring immersive audio experience NewJeans, Apple join hands to bring immersive audio experience
5Celebrity chef Paik Jong-won takes his business skills to next level with 'The Genius Paik' Celebrity chef Paik Jong-won takes his business skills to next level with 'The Genius Paik'
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group