Kang to stand trial

STX group founder Kang Duk-Soo has been charged with embezzlement and business malpractice as his shipping and shipyard empire crumbled.

The former head of the troubled conglomerate will stand trial in South Korea, prosecutors said, according to the Yonhap news agency.

Kang, 64, who stepped down in February, is accused of diverting funds from STX Heavy Industries to illegally support other ailing affiliates, chiefly STX Construction.

Investigators at the Seoul Central District Prosecutors' Office also alleged that Kang embezzled company funds to invest in his personal company by setting up a paper operation.

And he is further accused of creating a secret fund by inflating salary figures paid to company executives, prosecutors said.

The prosecution claims the value of the alleged frauds is $2.4bn.

But Kang was cleared of a charge of using company money to bribe politicians.