The Seoul Central District Prosecutors’ Office on Tuesday sought an arrest warrant for Kang Duk-soo, former head of shipping and shipbuilding conglomerate STX Group, on suspicion of embezzlement and business malpractice.
Kang, 64, is believed to have funneled the funds of STX’s financially troubled shipbuilding unit to illegally support other ailing affiliates during his tenure as the group’s chief between 2003 and February 2014.
He also allegedly used the company funds to bribe politicians.
Kang had been grilled by the prosecutors on Friday and Sunday over his charges.
Prosecutors have also sought arrest warrants for three other former high-level executives under the same charges.
Prosecutors launched an investigation into Kang in February after the company filed a complaint against him and four other former executives.
Once among the country’s largest conglomerates, STX Group’s flagship affiliates have struggled amid a downturn in the shipping and shipbuilding sectors.
(From news reports)