Prosecutors looking to arrest Hyundai chief in bribery scandal
Prosecuting attorneys in South Korea have requested an arrest warrant for Chairman Chung Mong-Koo of the Hyundai Motor Group. The paperwork is being sought on charges that the executive embezzled $106 million via slush funds, using some of the ill-gotten gains to graft government officials, among other accusations. The warrant filing comes just days after the chairman was interrogated for better than half the day on Monday.
His son, Chung Eui Sun is also being checked out closely by authorities, but no arrest appears immediately forthcoming, as there is more investigating to be done.
[Sources: AFP via TurkishPress.com; The Korea Times]
Reader Comments (Page 1 of 1)
Swat Lax 8:25AM (4/28/2006)
I just want to highlight a sentence in the NY Times article on this yesterday
"A Hyundai spokesman said it wasn't clear if Mr. Chung had an attorney."
What? This is one of the richest men in South Korea. He and his son just pledged $1 billion to various Korean charities in a PR move to try to distract people from what they are accused of doing. How does a billionaire not have an attorney, or an entire freaking law firm, on retainer???
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VL 8:39AM (4/28/2006)
From yesterday's news:
Korea's leading paper
http://english.chosun.com/w21data/html/news/200604/200604270018.html
http://times.hankooki.com/lpage/nation/200603/kt2006032717072711950.htm
http://news.yahoo.com/s/nm/20060427/ts_nm/autos_korea_hyundai_dc_5
http://www.cnn.com/2006/BUSINESS/04/26/korea.hyundai/index.html?section=cnn_latest
http://www.bloomberg.com/apps/news?pid=10000080&sid=azDfijbN96hk
http://biz.yahoo.com/ap/060427/skorea_hyundai_probe.html?.v=1
It's like a Hyundai I've never seen
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Jef 8:59AM (4/28/2006)
The probe has focussed on allegations that Chung and his son, head of Hyundai Motor affiliate Kia Motors, used the mutli-million dollar slush fund to bribe officials and facilitate a father-to-son transfer of control of the country's top automaker.
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Tankstelle 9:05AM (4/28/2006)
And yet people continue to support scum like this. There are hundreds of choices out there that are just as good or better than Hyundai - stop supporting these corrupt foreigners.
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bob 10:48AM (4/28/2006)
This problem will go away after he donates some more cash to a Korean Chrairity
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Jeff Gilleran 1:03PM (4/28/2006)
And our corporations here in the US are all perfect little saints right tankstelle?
Your joking right?
I think there is, and always will be corporate scandals and corruption from time to time.
Does it make it right?
No.
But this isnt really anything special about what is happening to Hyundai other than a spotlight on a company that just happens to be doing well and is under the microscope?
Political, social and economic scandals are just part of what makes the world go around in a competitive landscape called a "world economy".
It certainly isnt right, but alot of turning the "blind eye" happens everyday and lobbying is so far from "new" its not even funny.
Im sure there are so many "hush funds" changing hands here in the US in the auto industry its not even funny.
Chung Mong-Koo just got caught.
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bob 2:25PM (4/28/2006)
Tankstelle everytime you write about hyundai you only make yourself look a hillbilly redneck. Did you know that in the States, lobbying isnt illegal and GM, Ford and Chrysler have done it for years and continue to do it. If you want corruption look at the big three, they are more currupt then you!
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panasianbiz 5:54PM (4/28/2006)
Hyundai had really been turning things around in the last 5 years or so. They used to be the joke of the automotive world, but now they're in the top-10 worldwide and are viewed as a serious competitor. I wonder how badly this will damage their reputation in the long run.
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Stoneman 10:18PM (4/28/2006)
They busted him today. Proof that even if you make lots of money, greed can still erode your own personality. It's sad. They say the Hyundai badge is a representation of the customer shaking the company's hand. Maybe in this case it was the company stuffing bills down a friends pants.
Stoneman
http://www.stonemanautoreview.com
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Chung Fu Chen 11:35PM (4/28/2006)
This poor bastard gets busted- The guy build Hyundai from the ground up- He is Hyundai. All the GM execs, who havent contributed dick to their organization and have been funneling money away for years are not getting put behind the slammer.
GM execs belong in jail for 1. the Accounting Scandel, 2. Driving their suppliers bankrupt, 3. Environmental disregard, 4. Being the #1 wealth destroying stock in the world.
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david 10:56PM (4/29/2006)
yuck fou chung fu, they do build a halfway decent car, but just try to trade or sell it. resale is worse than yugo, can't transfer the warranty. and just what has this got to do with gm? are you trying to pull a republican trick by diverting focus on the issue? and by the way, i've done very well with gm stock!!!!!
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Jeff Gilleran 12:00AM (4/30/2006)
Actually resale value is way up for Hyundai.
In particular, anything made from 2002 and on.
I have a 04 Tiburon and its still worth nearly 14 Grand and it was 17K new.
Not bad considering its 2 1/2 years old.
Go back just one year to a comparable 2003 and the car looses just a bit over 1100.00, but also consider that the car has another year and 12K average on the clock.
Not bad at all.
The smallest car in Hyundais lineup, the Accent, particularly models built prior to 01 have pretty bad resale, but then again, they also didnt cost much to begin with either.
Anything built prior to 1995 by Hyundai resale was especially poor.
As far as comparing to a yugo, dont bother.
I know someone thats still driving the little bucket, and it was 4700.00 brand new in 1987.
Yeah its a pile, but only a good comparision for the mid/late 80s.
Today, that is not the case and Hyundai has more than cleaned up its act, its competing very well.
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