[THE INVESTOR] Dongbu Group Chairman Kim Jun-ki resigned on Sept. 21 following accusations that he sexually harassed his secretary. He has been leading the group for 48 years since its foundation in 1959.

“I apologize to shareholders, investors, customers, and employees of Dongbu Group. As my personal issues are burdening the company, I have decided to resign as chairman,” Kim said in a statement. 

Dongbu Group Chairman Kim Jun-ki.

According to the police in southern Seoul, his female secretary filed a complaint claiming he has sexually molested her on a regular basis since February.

A Dongbu Group official acknowledged there was “partial” physical contact between the two but claimed it was done with mutual consent. Kim has been staying in the US since July in order to receive treatment for his health problems.

The group has appointed Lee Geun-young, former chairman of the Financial Supervisory Commission, in his place. The new chairman was a bureaucrat in the Finance Ministry and also served as a non-executive director at Dongbu Metal, Dongbu Life Insurance, and Dongbu Fire and Marine Insurance while being an advisor for Dongbu Fire and Marine Insurance.

By Alex Lee (alexlee@heraldcorp.com)