Cheil Industries surges on 2nd day of trading

Ex-KHNP head detained for taking kickbacks

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Published : 2013-07-07 21:55
Updated : 2013-07-07 22:00

Kim Jong-shin, former chief of the state-run Korea Hydro and Nuclear Power Co., was put behind bars Sunday on charges of taking 100 million won in bribes from one of the company’s contractors.

Busan District Court on the day issued an arrest warrant for Kim.

While Kim resigned a year ago before his term expired amid simmering criticism over power outages, the prosecution recently expanded its investigation into irregularities involving a parts supplier to KHNP’s nuclear plants.

Operations had been suspended at six nuclear reactors after they were found to have been supplied with substandard control cables under falsified warranties from the local supplier JS Cable among others, while Kim was heading the firm.

During the recent parliamentary hearing, lawmakers strongly criticized officials at KHNP and the Korea Electric Power Corp. for the corruption scandal, which led the nation to face possible power shortages ahead of the summer peak season for electricity demand.

By Kim Yon-se

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