• Apr 20th 2006 at 1:01PM
  • 14

As part of an act of contrition for the bribery scandal rocking Hyundai Motor Group, the company is donating $1.05 billion dollars to charity. The word came Wednesday as Hyundai vice chairman Lee Jeon-kap issued a formal apology for the corporate malfeasance currently under investigation.

The donation will come in the form of 22.5 million shares of stock in Hyundai subsidiary Glovis, owned by Chung Mong-koo (HMG's chair) and son, Chung Eui-sun, president of Kia Motors. The shares are said to be valued at over $1 billion dollars.

Apparently, this type of corporate mea culpa is accepted practice for Korean business scandals, as earlier this year, conglomerate Samsung expressed regret over its own corruption charges with a nearly $850 million dollar donation.

Despite the pledges, neither Hyundai nor Samsung has named the beneficiary of their largesse, let alone transferred any monies.

[Sources: JoonAng Daily; Autodrom.lu]

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    • 1 Second Ago
      • 9 Years Ago
      So basicaly then their trying to bribe the public?

      • 9 Years Ago
      its too bad that it isnt illegal to lobby in the US and Can, because GM, Ford, and Chrysler would have been out of business years ago and I wouldnt have to look at their substadard products anymore.
      • 9 Years Ago
      Ok I get it, their fine was a billion dollars, so they apologized a billion times. That would have been a clever headline if it wasn't also a subtle joke on the stereotypical Asian phrase "a thousand apologies."

      Seriously autoblog think carefully before you use such insensitive and nearly racist remarks like that.
      • 9 Years Ago
      C'mon, Vinny, didn't you watch the movie "Tucker" and see how certain large American auto companies hung him out to dry? For once, from all that I've read, Hollywood actually got the story pretty close to right.

      Humanity is crooked, all of it. Don't lambast Hyundai and Kia's toothpick in the eye - after all, Enron was a plank in America's eye, wasn't it?

      Then there was the Savings and Loan debacle about 15 or 20 years ago, or had you forgotten that?

      This is not to excuse Hyundai and Kia from wrongdoing.
      But don't let's pretend our culture is any better.
      • 9 Years Ago
      I'm in Korea now on business trip and I can tell you that Korean public and mass media is not buying this latest move by Hyundai. In fact, most local news channels are ridiculing Hyundai, Samsung and Korean Gov't for allowing this type of practice.
      • 9 Years Ago
      #9 -

      The author of this post is half-Asian himself, and can assure you that no racial under/overtones were sought with the use of that phrasing.


      Chris Paukert
      • 9 Years Ago
      Samsung just paid $800 million fine for lobbying. Remember, this is a legal practice in most cultures and govt's however it doesn't excuse Hyundai breaking the law. Many major companies have been caught in Korea doing this.
      • 9 Years Ago
      Apology Accepted :) Hyundai really is the next Toyota, but they'll always be #2 as long as Toyota is alive.
      • 9 Years Ago
      Actually, my understanding of this situation is that Hyundai is guilty of doing business in a way that's legal in the US. I don't believe any form of lobbing is allowed in SK.

      I can understand the skepticism of post #2...I wonder the same thing. Not to take away from Bill Gates, but when he donates big money, it goes directly to the foundation his wife runs. Still, they help a lot of people.

      As for American companies, the spend a TON of money of lobbing. Then, after years of making substandard cars, they play the bankruptcy card and lean on the government (and our tax dollars) for help.

      I'd rather see US corporations deal with their malfeasance like Hyundai and Samsung.
      • 9 Years Ago
      Its a real shame that its not illegal to lobby politicians in the US and Can. If it was GM, Ford and Chrysler would be gone a long time ago. Then, people would be diving good cars not substandard junk!
      • 9 Years Ago
      Why are people getting on Hyundai's case? What they consider "corruption" over there is just everyday business/politics here. At least they made amends. It's unlikely we'll ever see anything like that here. I don't see Enron paying back the money they stole.

      Those who live in glass houses should not throw stones.
      • 9 Years Ago
      and we wonder why hyundai and kia are some of the least expensive vehicles out there. maybe ford and gm need to follow suit and up their campaign contributions.
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