KangDuk Soo who ran STX for more than a decade until he was ousted earlier thisyear is accused of diverting funds to troubled subsidiaries and bribingpoliticians.
Thearrest was approved by Seoul court judge, Yoon Gang Yeol, who is reported to haveconcluded there are grounds for bringing grave criminal charges against Kang.
Kang (61) has said he will co-operate with investigations into whathappened at STX on his watch and claimed he was too busy to bribepoliticians.
Threeother STX executives have also been arrested on charges of colluding with Kang.
Prosecutorslaunched a probe into wrongdoing at STX earlier this year and sought an arrestwarrant for Kang last month.
Kangbuilt STX into one of South Korea’s biggest conglomerates before the group raninto serious financial difficulties amidst allegations of over expansion and mismanagement.
