• Apr 15, 2006

Recent developments in the Hyundai Automotive Group's homeland bribery scandal are seeing the plot thicket. The prosecution announced Thursday that it has evidence supporting the accusation that company executives bribed politicians and government officials in 2001, as part of an effort to write-off bad debts incurred by the company's affiliates.

An arrest warrant is being sought by prosecutors for Kim Dong-hoon, who has admitted to gaining billions of won from Hyundai in order to white-out the company's debts. As one billion won is roughly equivalent to $1M U.S. dollars, this is no small matter.

Investigators are presently trying to determine whether Kim also attempted to lobby bank officials, and it already looks like he delivered some of the money to Korean government administrators.

On Tuesday, accounting firm Samil PricewaterhouseCoopers was raided in a separate probe as part of the investigation of a suspected illegal power shift scam by the automaker.

More international forensic accounting intrigue by following the link.

[Sources: Korea Herld and Stickerland.nl]



I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 8 Comments
      • 8 Years Ago
      3. Over the last 50 years most american automakers executives got caught in big scandals.... this is far from something new

      Posted at 1:35PM on Apr 15th 2006 by Kowell
      yeah like who?
      • 8 Years Ago
      nobody cares or even knows about this scandal except for koreans living in korea. this bit of news will hardly put a dent into their growth or sales of their new models. Honestly, who gives a fu#k?
      • 8 Years Ago
      This is just the start of the downfall of Kia/Hyundai. The Koreans treat their managers like dirt and people are starting to float resumes around like crazy. They're considered by most in the industry as the most likely to be the first transplant to get a union for their hourly workers.

      Although their cars are appealing for the money, the underpinnings of what looks like a rosey future are starting to crumble fast.

      GM needs a failure in the industry to take the attention off them. Later in the year this could be it.
      • 8 Years Ago
      Over the last 50 years most american automakers executives got caught in big scandals.... this is far from something new
      • 8 Years Ago
      And they're coming to an-------American town just like yours. Wonder how much the locals paid off.
      • 8 Years Ago
      To #6

      I'm sorry, but what world have you been living on for the last decade? To say Hyundai is in a downfall is the most ridiculous thing I've ever heard, have you even seen any of the models they've been making? Downfall was during the Excel crisis in the late eighties, it has been an uptrend since. The fact the issue has been caught is proof enough for me of progress.

      Unfortunately, from a consumer standpoint GM can't turn out a product that matches the reliability and interior fit and finish of the new Sonata and Azera; that is purely pathetic in my mind. Every American car I've owned have had these small but niggling noises, switchgear problems, and they seem to remain in the same amount despite new model development. They need attention, I think work ethic and expectation for benefits are problems with unions here; you won't find that much of an issue in other countries.

      I also don't understand your comment about managers being treated like dirt by citizens; this is not consistent with the country's improving work ethic. Take a look at Samsung and LG for an example of large reforms in corporate systems.

      Saying GM needs a failure to take scrutiny away from them is only fooling ourselves; the company has crawled like a turtle and repeatedly fumbles at fixing their issues even with all this attention. Such incompetence and lack of compromise from the unions is embarrasing for American industry; if imminent death and public outcry is not enough, then what is?
      • 8 Years Ago
      Let's see...leadership ends up in prison, stock price plummets, company spends R&D money on legal fees and fines, new board overreacts and puts timid, unimaginative new CEO in place, stock price continues to drop, company seeks to save money by further cutting R&D and skimping on materials, product quality nosedives, warranty costs skyrocket, shareholders run away in droves, US operations go up for sale...

      If I owned or was thinking about buying Hyundai, I would most certainly give a "fu#k." And you should too. Today there's a very fine line between success and disaster, and Toyota is the only company out there that can withstand a disaster right now. Hyundai/Kia will become the business swan dive of the new century if things continue as they have so far.
      • 8 Years Ago
      It's GM's fault that there was a scandal.