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Arrest warrant sought for former STX chief

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Published : 2014-04-08 18:08
Updated : 2014-04-08 18:08

State prosecutors sought an arrest warrant Tuesday for the former head of the financially troubled shipping and shipbuilding conglomerate STX Group over alleged embezzlement and business malpractice.

Kang Duk-soo, who headed the group between 2003 and February 2014, is accused of funneling the funds of STX Heavy Industries Co., a troubled shipbuilder unit, to illegally support other ailing affiliates and misappropriating company money to bribe politicians, prosecutors said.

After summoning the 64-year-old former chairman twice for questioning last week, Seoul Central District Prosecutors' Office asked a Seoul court to issue the warrant for further questioning. 

A prosecution investigation into the former chief was launched in February when the company filed a complaint against five former executives, including Kang. 

STX Group, once the country's 13th-biggest conglomerate with a total of 10 affiliates under its wing, has seen its major affiliates struggle from liquidity shortages and mounting debt due to the downturn in the shipbuilding and shipping sectors.

Kang, who began his career as a salaried worker at a cement company, expanded STX Group into one of the country's biggest conglomerates through corporate mergers and acquisitions. He, however, resigned from the top post in February 2014, saying that he would take responsibility for his mismanagement. (Yonhap)

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