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Korean Accountants Blamed for Daewoo Fraud LONDON, Feb. 20, 2001 (AccountancyMagazine.com) Accountants at South Korean conglomerate Daewoo Group have been charged with fraud worth $33 billion, only days after Seoul said that it would apply for membership of two international anti-money laundering organizations. According to reports in the global media, South Korean prosecutors have indicted 34 Daewoo executives and accountants. They have been accused of inflating the car making group's assets by Won 41,000 billion ($33 billion) and falsifying accounts to secure loans worth nearly Won 10,000. The fraud is alleged to have taken place in 1997 and 1998. Daewoo avoided bankruptcy in 1999 when domestic creditors agreed to a debt-restructuring plan. It is still in debt to the tune of $80 billion. Last Friday the Korean Ministry of Finance and Economics said it will apply for membership of the Organization for Economic and Cooperation and Development's (OECD's) Financial Action Task Force on Money Laundering, and the United Nations' sponsored Egmont Group before the summer. South Korea's National Assembly is expected to pass two anti-money laundering bills in coming months that will allow the government to set up a new anti-fraud body to assist the National Police Agency. The MOFE hopes these measures will gain it admittance to FATF and Egmont. Send comments to information@smartpros.com. Copyright 2001 AccountancyMagazine.com. Used with permission. |
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