South Korea’s pension service mulls suing DSME over fraud losses

South Korea’s National Pension Service (NPS) has said it may file a damages suit against Daewoo Shipbuilding & Marine Engineering (DSME) due to the yard’s ongoing $4bn-plus accounting fraud scandal.

The NPS saw its shareholding in DSME take an $86m hit between 2013 and 2015, the years where the accounting fraud manifested.

“We’re deliberating filing a damages suit against Daewoo because we suspect accounting fraud,” an official from the NPS told local media. “We must conduct a thorough review on how much financial damage it caused to the NPS, and the extent of any suit that we might file.”

NPS may seek compensation from DSME’s accountants, Deloitte Anjin, who have come under fire for failing to spot the huge fraud committed in recent years.

Separately, prosecutors in Seoul today said they have indicted a former DSME CFO over his alleged involvement in the fraud. Two former CEOs have already been indicted.

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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