Updated July. 12, 2014 04:38
While trying to revive (STX) business group, I might have gone too far in certain areas. I will gladly take responsibility for what I did wrong .
While reading three-page prepared statement at court, Kang Deok-soo, 64, former chairman of STX Group, stopped talking and wept.
Criminal Case Department 28 at the Seoul Central District Court held its first hearing on former Chairman Kang, who was indicted and arrested for the charges of accounting fraud worth 2.3 trillion won (2.26 billion U.S. dollars), business malpractice worth 284.1 billion won (279 million dollars) of funds from group affiliates, and embezzlement of company funds worth 55.7 billion won (54.7 million dollars).
Kangs attorney only admitted to his charges of unjustified financial assistance to group affiliates, but denied all other charges. Former Chairman Kang never instructed accounting fraud and nor was aware that accounting fraud was committed, the attorney said. He tried to revive the company, rather than seeking to achieve personal gains.
Kang was indicted and arrested on May 8 this year for using most of company funds he embezzled from March 2011 to April 2013 to repay his personal debts and secure managerial control, and used funds from group affiliates to provide financial assistance to STX Engineering & Construction and STX ForceTEC. He is also suspected of committing accounting fraud worth 2.32 trillion won (2.283 billion dollars), making fraudulent loans worth 900 billion won (883 million dollars), and issuing corporate bonds worth 1.75 trillion won (1.72 billion dollars).