Article: Korea's Michael Milken.

Suh Kap-soo, 55, widely described as the godfather of Korea's venture capital industry, was arrested this week for misappropriating company funds, manipulating stock prices and insider trading at the Kosdaq.

According to the prosecution, Suh established a paper company called Asia Pacific Alliance Investment (APAI) on Malaysia's tax haven island of Labuan, off the coast of Brunei, in 1996.

He borrowed $200 million in Korea and sent the money to the APAI account, which, at his discretion, invested in Kosdaq stocks. Along with two accomplices, he pocketed $61.17 million.

Suh, who won citations from the Korean president and prime minister, ...

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