Top court confirms acquittal of ex-state resources firm CEO over failed investment

By Yonhap
  • Published : Nov 15, 2018 - 14:35
  • Updated : Nov 15, 2018 - 14:35

The Supreme Court on Thursday confirmed an appellate ruling that found a former energy firm head not guilty of causing losses to the state by making an unsuccessful investment in mining projects.

Kim Shin-jong, former CEO of the state-run Korea Resources Corp., was indicted in September 2015 on charges of breach of trust for incurring some 21.2 billion won ($18.7 million) in losses to the company.

Kim Shin-jong, former CEO of the state-run Korea Resources Corp. (Yonhap)

He was accused of ordering the purchase of Keangnam Enterprises Inc.'s stake in the nickel development business in Madagascar at an excessive value.

He was also suspected of causing about 1.2 billion won in losses from its investment in the redevelopment of an iron mine in Korea's eastern province of Gangwon.

He headed the resources firm from 2008 to 2012.

In late September this year, the Seoul High Court upheld a lower court's acquittal of Kim, saying the investment was a managerial decision and is not subject to judgment by the law.

It also ruled that there was not sufficient corroboration to prove the suspicion that the stake purchase in Madagascar was made at the request of the late Keangnam chairman who was allegedly connected to a bribery scandal.

The top court on Thursday agreed with the appellate ruling. (Yonhap)