The nation’s securities regulator said Wednesday that it had filed a complaint against Woongjin Group chairman Yoon Seok-keum with the prosecution on charges of attracting investment while concealing its poor financial status.
Though Woongjin Group had lost its ability to pay back its debt in the aftermath of a credit rating downgrade, Yoon raised funds by issuing commercial paper worth 100 billion won ($91 million) from July to August 2012, said the Securities and Futures Commission.
According to the SFC, an arm of the Financial Services Commission, Yoon and several executives of the ailing group also issued CP worth a total 19.8 billion won by duping investors on Sept. 24, 2012.
The business group has been suspected of not publicizing the fact that it had applied for management normalization of Woongjin Holdings with the court after scrapping its earlier plan to dispose of Woongjin Coway.
Last December, Woongjin Group and its creditors reached an agreement to start the sale of Woongjin Chemical next year as a way to improve financial soundness.
Woongjin Chemical’s parent Woongjin Holdings has been placed under court receivership since last October because of debt problems.
Yoon had apologized for his mismanagement of the companies and resigned as CEO of Woongjin Holdings.
