Daewoo fugitive assets uncovered

Former Daewoo chief Kim Woo-Choong still on the run

The South Korean government has uncovered $108m in assets hidden by Kim Woo-Choong, the former Daewoo boss who went into hiding amid fraud allegations after his company went bankrupt last year.

Daewoo, once South Korea's second-biggest industrial conglomerate, filed for bankruptcy with debts of over $17bn in November 2000. Many creditors have still not been paid.

The Korean Deposit Insurance Agency, the government body which has been investigating Daewoo's failure, said it plans to seize the assets.

"(The government) will trace Kim's hidden assets to the end and force him to return them," the KDIC said.

The assets include a golf course and other properties as well as substantial corporate shareholdings.

Shell companies

Most are held in the name of Mr Kim's relatives, or by shell companies registered outside Korea.

Mr Kim is suspected of embezzling Daewoo funds and presenting a misleading picture of the company's finances in order to secure loans.

Mr Kim, who went missing on a business trip to China shortly after Daewoo collapsed, has previously denied any wrongdoing in statements issued through his Seoul-based lawyer.

Apology

Last month, he wrote a letter to a Seoul newspaper apologising for causing "pain and confusion".

Seven former senior Daewoo executives were given prison sentences in July this year for diverting company funds and falsifying accounts.

Mr Kim has indicated that he may return to Korea early next year, by which time his former colleagues will have finished appealing against their sentences.

In September, US automotive giant GM took over part of Daewoo's car manufacturing operations in a $400m deal which many analysts saw as heavily skewed in GM's favour.

Daewoo motor produces about two million vehicles a year.