Former Keangnam chairman commits suicide amid allegations of creating a secret fund.

While investigators planned to arrest the former chairman of Keangnam, he insisted he had done nothing wrong and sought death.

South Korean police have found the body of Sung Woan-jong, former chairman of Keangnam Enterprises, on Mount Bukhan, south of Seoul. Initial police findings indicate it was a suicide.

Police brought the body of former Keangnam Enterprise chairman Sung Woan-jong down the mountain yesterday. Photo: Korean Times

The incident occurred amidst a recent wide-ranging anti-corruption investigation in South Korea targeting the former chairman of Keangnam. Prosecutors accused Keangnam Enterprises, along with several other companies, of financial irregularities, such as creating slush funds during President Lee Myung Bak's administration.

At Sung's home, police found a suicide note explaining that he took his own life to prove his innocence. "I did not do the things people accuse me of doing. Please bury me next to my mother's grave," he wrote in the letter.

According to police plans, Mr. Sung was to be summoned to court for a decision on whether or not to issue an arrest warrant as requested by prosecutors. Mr. Sung's death is expected to affect the investigation.

In his suicide note, Sung Woan-jong, former chairman of Keangnam Enterprises, explained his reasons for taking his own life to prove his innocence.

Previously, the charges leveled against Sung and Keangnam Enterprises by prosecutors included profiting 80 billion won (US$74 million) from government and private loans by falsifying financial data between 2006 and 2013. He was also suspected of creating a 25 billion won slush fund and committing accounting fraud totaling 950 billion won.

Last Wednesday, Mr. Sung held a press conference and denied all allegations. "There were 86 companies involved in those projects. I don't understand why only Keangnam was named," he said. "Embezzlement is impossible because we had to use company funds first and then receive payment from the government later. The accusation that the money was spent somewhere before receiving payment is meaningless," he continued.

The allegations against Keangnam are part of a recent wide-ranging anti-corruption investigation in South Korea. The list of companies under investigation includes POSCO and its subsidiary POSCO E&C, the Korea National Oil Corporation, and Lotte Group and its subsidiary Lotte Shopping. POSCO E&C is suspected of inflating the cost of highway construction in Vietnam to create a slush fund of nearly $10 million.

According to VnExpress