DSI Transferred Executive of Major South Korean-Affiliated Construction Nominee Company to Public Prosecutor for Prosecution

DSI Transferred Executive of Major South Korean-Affiliated Construction Nominee Company to Public Prosecutor for Prosecution

On August 22, 2024, the Bureau of Security Crime of the Department of Special Investigation (DSI), under the direction of Mr. Thawewat Surasit, Director of the Bureau of Security Crime, assigned Police Lieutenant Settawut Saipong, Head of the special case inquiry team for Special Case No. 69/2562, along with the team of special case inquiry officials, to transfer Mr. Minwoo (surname withheld), a South Korean alleged offender for conspiring with his subordinate, the South Korean financial manager of POSCO Engineering (Thailand) Company Limited who facilitated Thai employees to act as Thai nominee shareholders, holding shares to meet the shareholding proportion required by law without actually paying for the shares. The alleged offender was transferred to public prosecutors at the Office of the Special Litigation, Office of the Attorney General (OAG), for further legal proceedings.

This case arose from the Bureau of Security Crime, DSI, prosecuting POSCO Engineering & Construction Company Limited (South Korea), which engaged in construction business in Thailand by acquiring and holding shares in POSCO Engineering (Thailand) Company Limited. The company was found to have arranged for Thai nationals, including its employees and personnel from a company registration service provider, to hold shares on behalf of foreign nationals. The company had entered into construction contracts with several companies in Thailand, generating a combined revenue of over 9 billion baht, but allegedly did not pay dividends, claiming that the company was continuously operating at a loss. The investigation concluded with a recommendation to indict a total of 12 suspects on the following charges: “Foreign nationals jointly operating a business without permission; Thai nationals or juristic persons who are not considered foreign nationals providing assistance or support to foreigners, enabling them to operate a business in circumvention or violation of the law; foreigners allowing Thai nationals or juristic persons who are not foreigners to commit such acts or act as foreigners’ nominees in holding shares to operate a business in violation of or circumventing the law; and company directors knowingly participating in the offenses committed by the juristic person." These actions constitute violations under the Foreign Business Act B.E. 2542 (1999) and the Criminal Code.

On August 20, 2024, the suspect was arrested at Suvarnabhumi Airport in Samut Prakan Province while attempting to flee the country. The team of special case inquiry officials from the Bureau of Security Crime subsequently informed the suspect of the charges and handed the suspect over to the public prosecutor today.

The operation to apprehend the suspect under the special case warrant was conducted following orders from Police Major Yutthana Praedam, Deputy Director-General and Acting Director-General of the DSI that directed the Surveillance and Intelligence Division, which is a division under his direct command, to form a task force to track down and apprehend suspects with arrest warrants, especially those with warrants nearing the end of their statute of limitations, to ensure that those accused of crimes who are still at large are brought to justice.