Korean cooling, case and power supply company Zalman Tech has filed for bankruptcy along with its parent company Moneual following claims of large-scale fraud.
Zalman is well known in the desktop computing market for its cooling-oriented product lines, including liquid-cooling and fanless cooling ranges, as well as power supplies, cases and - in a branch of the company not many outside Korea will recognise - stereoscopic 3D displays. While its products have their fans, the company appears to be no more following claims of fraud and the banruptcy of its parent company Moneaul, which acquired Zalman back in 2011.
According to local news reports first spotted in the western press by our friends at FanlessTech, Moneaul is accused of attempting to hide financial troubles as its export bonds reached maturity by overstating the quantity of Zalman products that were being sold into foreign markets. Zalman itself also stands accused of financial irregularities, with the Korea Times reporting that Zalman began offloading stock ahead of its parent company's receivership filing - suggesting that insider trading was at play.
The bankruptcy will hit the banks affected hard, with Moneaul unable to pay back a claimed 670 billion won (nearly £386 million) in loans as a result of its receivership. Moneaul's alleged fraud is reported by the Korea JoongAng Daily as coming as a shock for a company which had laid claim, now in question, to one trillion won in revenue last year. A former mid-level official at the company is quoted by the paper as saying that 'most of the employees realised in 2010 that the revenue was fabricated.'
Zalman has not yet issued a public statement on the matter.
UPDATE 10th November 2014
Zalman's US office has released a statement which admits to 'financial difficulties,' while denying that the company is going bankrupt as a result of its parent company's alleged impropriety. 'I know that recently various media and other vendors are spreading rumors regarding Zalman going bankrupt over the recent scandals in Korea by our parent company Moneual. I wanted to assure you that these rumors of Zalman HQ going bankrupt are completely false,' the statement to press reads. 'While our HQ is having some financial difficulties due to the recent troubles experienced by Moneual, Zalman is not going bankrupt.'
Zalman is well known in the desktop computing market for its cooling-oriented product lines, including liquid-cooling and fanless cooling ranges, as well as power supplies, cases and - in a branch of the company not many outside Korea will recognise - stereoscopic 3D displays. While its products have their fans, the company appears to be no more following claims of fraud and the banruptcy of its parent company Moneaul, which acquired Zalman back in 2011.
According to local news reports first spotted in the western press by our friends at FanlessTech, Moneaul is accused of attempting to hide financial troubles as its export bonds reached maturity by overstating the quantity of Zalman products that were being sold into foreign markets. Zalman itself also stands accused of financial irregularities, with the Korea Times reporting that Zalman began offloading stock ahead of its parent company's receivership filing - suggesting that insider trading was at play.
The bankruptcy will hit the banks affected hard, with Moneaul unable to pay back a claimed 670 billion won (nearly £386 million) in loans as a result of its receivership. Moneaul's alleged fraud is reported by the Korea JoongAng Daily as coming as a shock for a company which had laid claim, now in question, to one trillion won in revenue last year. A former mid-level official at the company is quoted by the paper as saying that 'most of the employees realised in 2010 that the revenue was fabricated.'
Zalman has not yet issued a public statement on the matter.
UPDATE 10th November 2014
Zalman's US office has released a statement which admits to 'financial difficulties,' while denying that the company is going bankrupt as a result of its parent company's alleged impropriety. 'I know that recently various media and other vendors are spreading rumors regarding Zalman going bankrupt over the recent scandals in Korea by our parent company Moneual. I wanted to assure you that these rumors of Zalman HQ going bankrupt are completely false,' the statement to press reads. 'While our HQ is having some financial difficulties due to the recent troubles experienced by Moneual, Zalman is not going bankrupt.'
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