Potential PKN Orlen partner company accused of insider dealing

SK Global, the Korean partner of PKN Orlen owned Anwil, has been accused by the Seoul general prosecutor of creative accounting and the management board is accused of insider dealing while planning the process of share issues of newly acquired companies. These activities lead to an overall profit increase of SK Global by over $1.2 billion in 2001. The company also has serious problems concerning debt repayment reaching $6 billion. SK Global's problems may lead to a halt in the planned investment together with Anwil, into SK Eurochem, a joint venture, which would specialize in the production of granulated PET, mainly used for manufacturing plastic containers, which was set to start in 2004. The joint investment was estimated at $72 million. (Parkiet, p. 1) A.K.