DSME Sued for Damages by National Pension Service

The National Pension Service announced on July 14 that it filed a damage suit against 10 executive members of Daewoo Shipbuilding & Marine Engineering with regard to a loss of 48.9 billion won. The National Pension Service refused to reveal how this amount was calculated.

According to industry sources, the prosecution’s recent investigations led to the conclusion that Daewoo Shipbuilding & Marine Engineering was involved in accounting frauds worth more than five trillion won in total in 2012 to 2014 alone and this has resulted in a loss of more than 10 trillion won in the domestic financial sector and the like.

The National Pension Service owned Daewoo Shipbuilding & Marine Engineering shares worth a total of 610.9 billion won in 2013, equivalent to a shareholding ratio of 9.12%. In August last year, it reduced the figures to 2.1 billion won and 0.16%. The National Pension Service is claiming that this incurred a loss of 99 billion won.

The prosecution also found that Daewoo Shipbuilding & Marine Engineering did not include its two trillion won loss in its financial statements in 2013 and 2014 before reflecting it in its operating loss for last year. According to some estimates, the National Pension Service’s financial losses during the period amount to 30 billion won or so.