Daewoo founder back in court months after pardon

The founder of South Korea's now-defunct Daewoo group on Wednesday admitted hiding assets worth millions of dollars, months after he was pardoned over one of the world's largest corporate failures. A haggard-looking Kim Woo-Choong, 72, pleaded for leniency when he appeared in court, Yonhap news agency reported. "I don't know how much time I have left to live, but on this occasion I give my pledge to lead an exemplary life," he told the judge. Prosecutors said they are seeking a one-year suspended jail sentence to ensure the ailing former tycoon will not go to prison. Kim pleaded guilty to hiding assets worth 115 billion won (111 million dollars) to avoid their forfeiture under a court order. Daewoo had debts of 82 billion dollars when it went under in 1999 in the wake of the Asian financial crisis. The government was forced to spend some 30 trillion won to rescue its subsidiaries. Kim fled the country but returned after six years. In November 2006 he was given an eight-and-a-half year jail sentence for embezzlement and for accounting fraud involving 20 trillion won. He was also ordered to forfeit 17.9 trillion won and pay 10 million won in fines. In December 2006 the jail sentence was suspended on grounds of ill health and Kim was pardoned last December in a presidential amnesty. Prosecutors imposed fresh charges on Kim last month when he was found to have stashed the 115 billion won in a paper company he established. They noted, however, that he had cooperated with their investigation. Kim claimed that he could not previously forfeit the assets because he was in the midst of a legal dispute with Daewoo's creditors. Prosecutors sought a one-year jail sentence, suspended for two years, "considering the defendant deeply regrets his crime and has voluntarily disclosed the assets." Before the financial crisis exposed its weaknesses, Daewoo was exporting goods worth 17.6 billion dollars a year -- 13.3 percent of South Korea's total exports -- and employed 250,000 people worldwide. The court will pass sentence on September 4. South Korea has a record of leniency towards bosses of chaebol -- giant family-run conglomerates -- and other prominent white-collar criminals. On Tuesday President Lee Myung-Bak granted pardons to 74 convicted business people including the Hyundai Motor boss, citing a need to reinvigorate the economy.