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View of Osstem Implant's headquarters in Seoul (Yonhap) |
The chief of South Korean dental implant maker Osstem Implant Co. on Wednesday apologized for its own employee allegedly embezzling a large amount of corporate funds.
The employee in charge of managing corporate funds, only identified by his surname Lee, has allegedly embezzled 188 billion won ($157.7 million).
Osstem Implant on Friday sued the employee in question on charges of embezzlement.
The amount is estimated to be equivalent to 92 percent of Osstem Implant's equity capital of 205 billion won for 2020.
"I sincerely apologize for causing anxiety to shareholders and customers," said CEO Um Tae-kwan in a statement. "The company is doing everything it can to retrieve the embezzled money."
Um said the alleged amount is huge, yet it is not enough to damage the company's financial standing.
"(The embezzled amount) is about 59 percent of the company's equity capital as of end 2021," Um said.
The chief also said the company's net profit could even swing to the black for 2021 once the embezzled money is retrieved.
Police are tracking the whereabouts of 188 billion won, with the possibility of the money being divided and transferred through multiple bank accounts.
Since Friday, Osstem Implant has been suspended from trading on the secondary KOSDAQ market.
Osstem Implant is the 20th mostly valued firm on the secondary market with market capitalization of some 2 trillion won.
The suspension will be in place until the bourse operator, the Korea Exchange, makes the final decision on the dental implant maker's listing eligibility. (Yonhap)
