Daewoo Group founder Kim Woo-choong was on Monday sentenced to ten years in prison relating to fraud and corruption charges that resulted in the collapse of the South Korean conglomerate.

Daewoo Group founder Kim Woo-choong was on Monday sentenced to ten years in prison relating to fraud and corruption charges that resulted in the collapse of the South Korean conglomerate.

Kim, who is in poor health, evaded the authorities for six years following Daewoo's collapse in 1999 with debts totalling more than US$80 million.

Kim returned to South Korea in 2005, where investigators then accused him of fraudulent accounting by Daewoo amounting to US$42, the "borrowing" of US$10,3 billion and transferring of US$3,2 billion into overseas accounts. They sought a 15-year prison term and a US$24,2 billion fine, reports indicated.

Kim built the country’s second largest industrial group over three decades and the collapse remains one of the world’s largest corporate failures.

A General Motors-led coalition acquired parts of Daewoo from its creditor bankers in 2002 and a new company GM Daewoo Auto Technology (GM-DAT) was formed. The new division develops and manufactures vehicles for a number of GM brands, including Chevrolet, Opel and Suzuki.

Chung Mong-koo, the chairman of one of Daewoo’s greatest rivals, Hyundai Automotive Group, has recently also been indicted on charges relating to corruption and bribery stemming from his company's creation of a slush fund. Chung’s case continues in the Seoul Central District Court.

Original article from Car