The highest court in South Korea on Sunday dismissed former President Roh Tae-woo’s claim to ownership of his nephew’s company although it was founded with his slush fund.
Roh gave some 12 billion won ($10.6 million) to his younger brother Jae-woo before a local court ordered the former leader in 1997 to return to state coffers roughly 263 billion won he had amassed during his five-year tenure from 1988.
The younger Roh used the funds to set up a cold storage company with the help of a friend identified only by his surname Park. The company is currently owned by the two founders and Roh Jae-woo’s son Ho-jun.
The former president lodged a suit against his nephew in 2008, claiming ownership of the company.
“That the former president gave 12 billion won to Jae-woo does not necessarily mean he entrusted (his brother) to establish the company, so he cannot be seen as an actual owner of the company,” the Supreme Court said in its ruling.
In a similar suit the former leader filed against his brother, the top court also ruled against the plaintiff in June. (Yonhap News)
