Hyundai motor chairman Chung indicted
(Reuters)
Updated: 2006-05-16 14:38
Prosecutors indicted Hyundai Motor Co. Chairman Chung Mong-koo on Tuesday in
an embezzlement and slush fund scandal gripping South Korea's largest automaker.
Hyundai Motor Group
head Chung Mong-Koo. The head of South Korea's largest carmaker has been
indicted on charges of embezzlement and breach of trust following a
month-old probe into a slush fund scandal, Yonhap news agency
said.[Reuters] |
Chung, 68, has been in custody since being arrested on April 28 on suspicion
of embezzling about 100 billion won (US$106 million) in company money to create
the slush fund and of breach of trust for allegedly incurring about 300 billion
won (US$320 million) in damages to the company.
Kang Chan-woo, spokesman for the Supreme Prosecutors' Office, confirmed
Chung's indictment, but didn't disclose the specific charges.
Hyundai is suspected of using the secret money, via at least two lobbyists,
to seek favors from the government.
Chung's son, Eui-son, president of Kia Motors, an affiliate of Hyundai, has
also been investigated, but wasn't indicted Tuesday. Media reports said
prosecutors plan to indict the junior Chung later.
Hyundai is suspected of using the slush fund, via at least two lobbyists, to
seek favors from the government.
The lobbyists have been arrested on charges of receiving money from Hyundai
in exchange for promises to help it win construction approvals and permits, and
other business favors.
It is unclear whether the lobbyists bribed government officials. It is
illegal in South Korea to accept money in return for exercising
influence.
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