Ex-chief of Daewoo Shipbuilding Summoned over Company's Accounting Fraud

A former CEO of Daewoo Shipbuilding & Marine Engineering Co., one of the country's top three shipbuilders, was summoned Monday as prosecutors widened their probe into the financially troubled firm's alleged accounting fraud and poor management.

Ko Jae-ho, who headed the shipyard from 2012 to 2015, appeared before the Seoul Central District Prosecutors' Office in southern Seoul as a key suspect in the ongoing investigation into the embattled shipbuilder.

"I feel deeply responsible for the grim situation faced by the company," he told reporters before entering the prosecutors' office. Still, Ko denied allegations he ordered his subordinates to manipulate figures.

The 60-year-old is suspected of committing accounting fraud worth some 5.4 trillion won ($4.6 billion) from 2012 to 2014 by under-reporting the production cost or exaggerating the profits.

Earlier this year, the shipyard said it swung to huge losses in 2013 and 2014 from earlier reported profits, citing accounting mishaps.

Prosecutors said they are investigating the motive and exact size of the fraud, adding he could have committed the crime

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