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Kim Woo-Choong (19 December 1936 – 9 December 2019)[1] was a South Korean businessman who was the founder and chairman of Daewoo Group until its collapse in 1999.
Kim Woo-choong | |
|---|---|
| Born | 19 December 1936 |
| Died | 9 December 2019 (aged 82) |
| Nationality | Korean |
| Occupation | Businessman |
| Known for | Founder of Daewoo |
| Criminal status | Deceased |
| Criminal charge | Fraud |
| Penalty | 10 years in prison |
| Kim Woo-choong | |
| Hangul | 김우중 |
|---|---|
| Hanja | |
| Revised Romanization | Gim U-Jung |
| McCune–Reischauer | Kim U-Chung |
Background
editBorn in Daegu, Kim was the son of the provincial governor of North Gyeongsang Province. He then became a newspaper delivery boy once his father was removed from power after the independence of Korea from Japanese rule. He graduated from the prestigious Kyunggi High School, then finished his education with an Economics Degree at Yonsei University in Seoul. Kim's father was the mentor of future President, Park Chung Hee, who in turn supported Kim to a great degree financially
Daewoo
editAfter graduating from Yonsei, Kim entered a small trading corporation specializing in textiles and clothing. He left and created Daewoo Industries with five other associates. He managed to do well using his connections in the alumni network of Yonsei University and with political backing.[citation needed]
Kim rapidly expanded the renamed Daewoo Group by using borrowed money to purchase near-bankrupt companies. After 30 years in business, Daewoo Group was listed as second in assets and third in revenues in Korea. Daewoo had the most overseas branch offices among all the major Korean chaebols, a sign of the company's rapid growth.[citation needed]
However, due to its poor financial structure; the unstable Daewoo Group plummeted into chaos when the Asian Financial Crisis hit in 1997. It had to sell off nearly 50 subsidiaries, only focusing on the core divisions.[citation needed]
By 1999, Daewoo, the second largest conglomerate in South Korea with interests in about 100 countries, went bankrupt, with debts of about US$50 billion (equivalent to $91 billion in 2023).[citation needed]
Soon after the demise, Kim Woo-choong fled to Vietnam, and was charged with accounting fraud worth 41 trillion won (US$43.4 billion), illegally borrowing 9.8 trillion won (US$10.3 billion), and laundering US$3.2 billion out of the country while in exile. Kim Woo-choong was wanted by Interpol for his irresponsible spending as chairman of Daewoo Group[2]
He was arrested soon after he returned to South Korea on 14 June 2005, and apologized "for hurting the nation" and accepted full responsibility for the collapse of the group, adding that he was "ready to accept whatever the authorities have in store for him," according to the Chosun Ilbo.[3]
Criminal charges
editIn May 2006, he was sentenced to 10 years in prison after being found guilty of charges including embezzlement and accounting fraud. In addition, 21 trillion won (US$22 billion) of his fortune was seized and he was fined an additional 10 million won (about US$10,000).[4]
Citing health concerns, his sentence was reduced to 8 1/2 years; on 30 December 2007, he was pardoned by President Roh Moo-hyun. South Korean presidents traditionally hand out pardons for the new year.[5]
Death
editOn 9 December 2019, Kim died due to pneumonia at Ajou University Hospital in Suwon, 10 days before his 83rd birthday.[6]
References
edit- ^ "(LEAD) Former Daewoo Group Chairman Kim Woo-choong dies at age 82". 10 December 2019.
- ^ "Daewoo founder Kim gets 10-yr term". CNN. 30 May 2006. Archived from the original on April 8, 2008. Retrieved 2008-11-20.
- ^ "Kim Woo-choong Must Prove He Is Sincere". The Chosun Ilbo. The Chosun Ilbo. 2005-01-14. Archived from the original on 2005-06-17.
- ^ "Daewoo boss gets 10 years in jail". 30 May 2006 – via news.bbc.co.uk.
- ^ Herskovitz, Jon; Lee, Jin-joo (2007-12-31). "S.Korea pardons Daewoo founder, death-row inmates". Reuters.
- ^ Sang-Hun, Choe (11 December 2019). "Kim Woo-choong, Who Strove to Be 'Automotive Genghis Khan,' Dies at 82". The New York Times. Retrieved 5 December 2020.