Investigation uncovers motive for Pigeon Corp. chairman’s ordered assault

Posted on : 2011-10-26 13:32 KST Modified on : 2019-10-19 20:29 KST
Prosecutors say Pigeon Corp’s chairman wanted to silence the former CEO from speaking to the press about illegalities he allegedly committed

By Kim Tae-gyu

An investigation by prosecutors has reportedly uncovered the primary motivation for Lee Yoon-chai, the 77-year-old founder and chairman of Pigeon Corp, to hire gang members to physically assault former CEO Lee Eun-wook. Pigeon Corp is South Korea’s largest fabric conditioner maker. Prosecutors say the order was given to silence Lee Eun-wook’s revelations to the press about the CEO’s dictatorship-like management style and suspicions of Lee’s direct role in raising slush funds from corporate funds. The Seoul Central District Prosecutor’s Office indicted Chairman Lee and another Pigeon Corp marketing executive also surnamed Lee Tuesday for ordering an assault against whistle-blower Lee Eun-wook.

The prosecution discovered through their investigation of the bizarre case directly involving the corporation’s chairman that the Lee Yoon-chai ordered a subordinate surnamed Kim to take “follow-up measures” on whistle-blower Lee after a series of reports on the group’s irregularities by the weekly magazine Hankyoreh 21 were published for five weeks in a row. The reports publicized the chairman’s allegedly unlawful management practices, such as creating slush funds, that Lee had witnessed while serving as a CEO before being fired. After being instructed by Chairman Lee, Kim contacted a gang member identified only as “Oh,” belonging to the Mudeungsan clan in the southwestern city of Gwangju, on Sept. 3. Kim passed on his boss’s wish to force CEO Lee to stop talking and begin negotiations with the company, instead of continuing to disclose information to the press. PRosecutors said the chairman’s message tacitly implied tactics including physical violence against Lee.

Oh initially demanded 300 million won ($265,342) for carrying out the chairman’s “request,” saying he needed the money for issuing daepo phones, registered under a stolen or false name, and mobilizing gang-members. Kim handed him the half of what Oh demanded, 150 million won. Two days after the money transfer, former CEO Lee was beaten in front of his house by gang member who belong to the same clan as Oh.

Following media reports on the assault case, Oh once again demanded the rest of his initial fee in a bid to evade police search. He finally received another 150 million won from Kim, which he reportedly received from Chairman Lee. The prosecutors included the charges of helping suspects flee in their indictment against the chairman and Kim.

(Translated by Kang Jin-kyu, Intern)

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