August 02, 2013 10:35
The Hankook Ilbo daily, which has been having problems publishing amid a feud between management and journalists, has gone into de facto court receivership.
The Seoul Central District Court on Thursday approved a request by 201 former and present journalists seeking to rescue the newspaper from financial distress and named a court-appointed manager to oversee the company.
Management including chairman Chang Jae-ku, who stands accused of causing the company W20 billion (US$1=W1,123) in losses, cannot sell any of the firm's assets without court approval and face limits on editorial decisions.
Earlier, prosecutors sought an arrest warrant for Chang on charges of causing the daily huge losses by relinquishing its preferential right to buy a new building at below market value. The new building sits on the site of the newspaper's former headquarters.
The court plans to interrogate Chang on Monday.
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