AsiaShipyards

DSME accounting fraud totalled $1.27bn, first arrest made

Photo of Sam Chambers Sam ChambersJune 15, 2016
7 Less than a minute

State auditors in Seoul have unearthed a KRW1.5trn ($1.27bn) accounting fraud at beleaguered Daewoo Shipbuilding & Marine Engineering (DSME).

DSME, which is going through restructuring, posted a loss of KRW5.5trn last year. DSME overestimated its operating profit in 2013 and 2014 by KRW44bn and KRW1.09trn, respectively, investigators have found.

Two former CEOs of the yard have had travel bans put in place as investigators look to make arrests.

DSME halted trading on the Seoul bourse today and revealed a former unnamed employee had embezzled KRW18bn won ($15.3m). The former employee is now being held in custody by the authorities.

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Photo of Sam Chambers Sam ChambersJune 15, 2016
7 Less than a minute
Photo of Sam Chambers

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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