Former KDB chief pressured DSME to invest in associate’s firm

[THE INVESTOR] Kang Man-soo, a key associate of former President Lee Myung-bak, put pressure on Daewoo Shipbuilding and Marine Engineering to make large investments in a biotechnology firm operated by his acquaintance, the prosecution said on Aug. 4.

Kang served as the chief of Korea Development Bank between 2011 and 2013, and has been implicated in the expanding DSME corruption case. His home and office were raided on Aug. 2 in connection with the case. According to the investigators, Kang used his position as the chief of KDB, DSME’s largest shareholder, to invest 8 billion won (US$ 7.18 million) in a company operated by an acquaintance of his.

The prosecution said that former DSME CEO Nam Sang-tae injected nearly 500 million won into the company through an associate of his, and DSME provided 4.4 billion won research subsidy to the biotech company between 2012 and 2013.

The biotech company in question was being run by a former journalist with close ties to Kang from 2010.

The investigators also suspect a construction firm operated by a distant relative of Kang.

By Choi He-suk (cheesuk@heraldcorp.com)