The Keangnam 'empire' declines 2The Keangnam 'empire' declines 2

With the Chairman’s suicide and the company’s name being removed from the Korean stock exchange not long ago, Keangnam Enterprises – one of the once strongest economic empires in Korea continued to decline.

Established in 1951, Keangnam Enterprises was once one of the top 20 construction companies in the country.

Chairman Sung Woan-jong committed suicide while at the center of a scandal about setting up a slush fund and offering bribes.

In 1973, Keangnam continued to create a milestone when it became the first construction company to IPO on the Korea Exchange.

In 1987, this company was acquired by Daewoo Group and was restructured from 1999 to 2002. The company’s operations improved further after being acquired by Dae-a Engineering and Construction Company of Chairman Sung Woan-jong.

Mr. Sung himself is considered a legend in the construction industry.

The company’s peak was in 1994, when the stock price reached 225,000 won.

Also in 2014, Keangnam shares on the stock market were about 4,800 won.

Keangnam’s creditors, the banks that hold a large amount of shares after converting debt into shares, also faced bad luck and losses because the price of this stock code continuously decreased.

The Seoul Court has just ruled that Keangnam Company should let the bank manage its assets after the company’s requests for financial support were rejected by creditors.

Keangnam’s scandal broke out after being accused of setting up a slush fund, bribing government officials, and committing accounting fraud with an amount of up to hundreds of billions of won.

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By Eliana

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