Ex-KDB chief's home raided in DSME probe
By Lee Kyung-min
Kang Man-soo
The prosecution raided the home and offices of Kang Man-soo, 71, former head of Korea Development Bank (KDB), Tuesday, over his involvement in an alleged accounting fraud and corrupt business practices by Daewoo Shipbuilding & Marine Engineering (DSME), of which KDB was the major shareholder.
The raid was the latest development in the ongoing investigation into the troubled shipbuilder, with two former heads of DSME ― Nam Sang-tae and his successor Ko Jae-ho ― indicted on charges of embezzlement.
The investigation may further expand to alleged corrupt ties between the shipbuilder and the state-run bank.
Investigators of the Seoul Central District Prosecutors’ Office raided his home in southern Seoul and his two offices and seized computer hard disks, documents, contracts, accounting records and his personal diaries.
They also raided a construction firm and a biotechnology firm that are suspected of having won contracts from DSME with the help of Kang, whom the prosecution believes pocketed some of the firms’ profits in return for the favor.
After reviewing the seized material, Kang may face questioning.
The raid came after the prosecution found a suspicious money flow involving Kang while reviewing Nam and Ko’s financial transactions. It is alleged that Kang received illicit gains from DSME in return for conniving in the shipbuilder’s accounting fraud worth billions of won.
Kang led the bank between 2011 and 2013, while Nam headed the shipbuilder from March 2011 to April 2013 and Ko, for two years afterward.
Kang also faces criticism that he helped former KDB officials gain appointments at key positions at DSME.
Following Kang, his predecessor and successor may also be questioned.
Kang, the key aide to former President Lee Myung-bak, served as a finance minister and chief financial presidential advisor under the Lee administration. He was also former KDB Financial Group chairman.