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PC Cooling Specialist Zalman Goes Bankrupt Due To Fraud
An anonymous reader writes Zalman's parent company Moneual's CEO Harold Park, and vice presidents Scott Park and Won Duck-yeok, have apparently spent the last five years producing fraudulent documentation relating to the sales performance of Zalman. These documents inflated sales figures and export data for Zalman's products. The reason? Bank loans. By increasing sales and exports Park and his associates were able to secure bank loans totaling $2.98 billion. Someone has finally realized what has been going on, though, triggering Zalman's shares to be suspended on the stock market and the company filing for bankruptcy protection. The questions now turn to how this practice was allowed to continue unnoticed for so long and how the banks will go about getting their near $3 billion back.
Will he be sent to the Cooler?
In these situations everyone should just chill and take it easy. Clearly we don't need to let things spin out of control. I'm sure Zalman's lawyers can take the heat.
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(That said, South Korea has its own flavor of structurally problematic businesses, most notably the rather fraught interactions between the Chaebols and the banking sector and a certain amount of 'too big to fail', against which reform has had limited success.)