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Son of former Doosan chairman implicated in W50m loan fraud

Aug. 12, 2012 - 20:32 By Korea Herald
Park Jung-won, a member of the Doosan Group’s founding family who was found guilty of stock price-rigging in 2010, has been accused of fraud.

According to the police, an Internet shopping mall operator filed a complaint against Park over an unpaid dept of 50 million won ($44,000).

The police said that Park has been ordered to appear for questioning twice but has refused comply saying that he was negotiating with the complainant

In the filing, the online mall operator said that Park borrowed 50 million won in June on condition of paying 2 million won in interest.

However, Park delayed repayment for more than two months saying that he would repay the debt once complications over the ownership of a property in Seoul’s Hannam-dong were resolved. According to the filing, Park had promised that he would use the property to take out a loan with which he would repay the debt.

The mall operator also claims that the property in Hannam-dong belongs to another person.

Park Jung-won is the second son of former Doosan Group chairman Park Yong-oh, who killed himself in 2009, four years after he was ousted as group chairman by his brothers in 2005.

In 2010 the younger Park was found guilty of manipulating the stock price of the KOSDAQ-listed New Wall Corp. and was given a two-and-a-half year jail term.

By Choi He-suk  (cheesuk@heraldcorp.com)