Moneual executives are arrested in export fraud worth 3 Billion USD.
According to the Korea Joongang Daily the national customs authority announced that Moneual CEO Park Hong-seok and two other executives at the company were arrested on the suspicion of submitting false export documents for home appliances worth more than 3.2 trillion won ($3 billion) from early 2009 through July this year.
“CEO Park said during the investigation that the fraud dates back to 2007 when a U.S.-based business partner returned a shipment of home theater PCs, causing a financial crisis at the Korean company. The executive figured out that Moneual could re-export the low-quality PCs to China and Hong Kong, which allowed the company to continue to borrow money from Korean banks.
To deceive Korean banks and credit companies, Park opened a factory and storage centers in Hong Kong to make it seem as if Moneual was producing the home theater PCs there. The customs office found that of the 3.2 trillion won worth of cheap computers exported, only 24 percent came from Korea, and 76 percent, worth 2.4 trillion won, were made in Hong Kong.”
Read the whole story at the Korea Joongang Daily – Moneual execs arrested over export fraud.