By Kim Hyun-cheol
Staff Reporter
Tuesday saw only a moderate fall at the stock exchanges, although the U.S. government's huge bailout package proposal was turned down by Congress. Stocks of certain firms, however, still nose-dived because of on-going scandals.
Kenertec, an energy-saving equipment producer, lost 8.07 percent, or 650 won ($0.54), to 7,400 won at KOSDAQ, which ended in a less-than-expected 1.18-percent fall to close at 440.77.
The prosecution Monday arrested Chung Jang-sup, former president & CEO of Korea Midland Power, over allegations of receiving bribes from Kenertec. Earlier this month, its president was arrested for raising a slash fund for illegal lobbying in the process of bidding for a cogeneration plant to be built at the casino Kangwonland.
Tuesday's KOSPI index closed at 1448.06, down a slight 0.57 percent, or 8.3 points, but the declination was much bigger for stocks of CJ Group and its subsidiaries, after a 'hitmen scandal' hit the conglomerate regarding the possible slush fund of CJ chairman Lee Jay-hyun.
CJ Group lost 3.23 percent, or 1,550 won, to 46,500 won, while CJ Cheiljedang dropped 5.42 percent and CJ Internet 3.98 percent.
The police last week sought an arrest warrant for a former accountant of the company for hiring two hitmen to kill a gangster who failed to pay back a loan drawn of funds belonging to CEO Lee.
Prosecutors are purportedly investigating the possibility the fund money was part of a slush fund created by CJ's head.
Suspicion is growing over a possible new illegal laundering scandal, as several dozen accounts, allegedly made under names of other CJ executives and employees, were found during the investigation.
Hyosung Group also suffered a huge setback with a 3.97 percent fall, as the prosecution kicked off a full-scale inquiry into allegations of another slush fund of chairman Cho Suck-rai, also the chairman of the Federation of Korean Industries.