Autoblog

The South Korean government has decided not to pursue an indictment against Chung Eui Sun, president of Kia Motors. The move not to prosecute apparently stemmed from the fact that his father, Chung Mong Koo (Hyundai Motor chairman) was the one with final authority, and he is being indicted in the bribery scandal.

A spokesman from the prosecutor's office indicates that Chung Mong Koo has confessed to some of the charges, though more specifics were not disclosed.

[Sources: The Standard; Hankooki]

With Hyundai chairman Chung Mong-koo (right) arrested and jailed Friday for alleged embezzlement and political slush funds in South Korea, the question is: Will the automaker continue to grow at a breakneck pace, or will mounting legal troubles conspire to take it down a peg or two? The Hyundai executive has been released, but the ramifications for the automaker (legal and otherwise) would appear to be just beginning.

Earlier this year, the company's stock was worth $98/share, but its value has dropped to $89 as of Friday, and it's expected that the company will endure a 7 percent decline in profits in the first quarter. However, as it remains unclear how deep the company's wrongdoing extends, it will be difficult to gauge just how the scandal will affect the automaker's day-to-day operations, let alone its long-term future.

What do you think? Will Hyundai and Kia's corporate unrest unravel this automotive juggernaut, or is all of this just a speed bump on the road to greater profitability and market share? Sound off in 'Comments.'

[Sources: CNNMoney.com; BayNews9.com; ChinaDaily.com]