Court rejects former president's claim in family business row

SEOUL, Jan. 22 (Yonhap) -- A Seoul court rejected on Thursday a request by former
president Roh Tae-woo that he be legally confirmed as the real owner of his
younger brother's company.
Roh is seeking to reclaim 12 billion won (US$8.7 million) he says he lent to his
brother Jae-woo on two occasions in 1989 and 1991. Roh also accused his brother
of unilaterally using part of the money to establish a cold storage company,
Aurora C.S., in 1989 and appointing his own son, Ho-joon as its chief executive.
The former president, who took office in February 1988 and served a single 5-year
term, filed the suit with the Seoul Central District Court in 2004 after learning
that his brother's son, Ho-joon, had sold a portion of the company's real estate
assets, valued at about 11 billion won, to himself at a below-market price.
The former president insists that the 2004 property sale was illegal because he
is the de facto owner of the company and is demanding his money back.
"The plaintiff's argument that the money he gave to his brother and nephew was
not a donation lacks concrete evidence," the court said in a verdict.
In early January, the Suwon District Court turned down a separate request by the
former president that his nephew compensate him for the asset sale.
The Suwon court said the former president is not the owner of the company as he
gave money to his younger brother with no strings attached and has not been
involved in the company's management.
brk@yna.co.kr
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