In South Korea, economics trumps justice. Chung Mong-koo, the head of Hyundai who recently received a suspended sentence for embezzling and bribes has -- along with 341,000 other businessmen, bureaucrats, and politicians -- been given a full pardon.
President Lee Myung-bak, who said he was "personally against" the decision, decided to issue the pardons anyway. Mong-koo wasn't even in jail, but apparently the convicted and jailed businessmen were "having problems doing business overseas." Go figure.
So on Liberation Day, in hopes that "businessmen would take the lead in reviving the economy by creating jobs through active investment and exploring markets abroad," the bad guys got gifts even better than walking papers. In South Korea, crime does pay... if you have good business sense.
South Korea is working hard to crack down on corruption in its business sector, but the example-setting won't begin with Hyundai boss Chung Mong-koo. A Korean court gave Chung a three-year suspended sentence as punishment for embezzling monstrous sums of cash from the world's sixth largest automaker. Chung admitted to embezzling company money to pay off politicians, but that didn't stop the courts from going easy on the billionaire. The judge cited the fact that Chung used most of the embezzled money to run the business, but that answer isn't sitting well with many South Koreans looking for justice. Chung is a member of the chaebol, which is a group of families that control most of the wealth in South Korea. For all his wrong-doing, Chung spent a grand total of two months behind bars, and he's been ordered to donate $828 million. It's good to be rich apparently, at least in Korea.
[Source: Automotive News - sub. req'd, Photo by HONG JIN-HWAN/AFP/Getty]
Click above to watch the video UPDATE: Hyundai Motor America responds to the cranky South Korean reviewer. Click here.
The Hyundai Genesis has had a lot of positive speculative press, and there are a lot of journalists anxious to get behind the wheel of the rear-wheel-drive sedan from South Korea. A quick check of the Genesis stat sheet shows that Hyundai is delivering an awful lot of luxury and performance for what promises to be a very low price, but at least one South Korean journalist isn't all that impressed. After the jump is a seven-minute review of the Genesis sedan that absolutely trashes the South Korean Domestic Market sedan in its native tongue.
The reviewer liked the acceleration from the 3.3L V6 and we agree that it sounds great, but from there things get ugly. The Genesis sedan had too much body roll, its driving characteristics were far from dynamic, the brakes were mushy and the tires struggled to grip the road even when they weren't being pushed that hard. The on-camera reviewer summed up the Genesis by saying that luxury equipment does not a luxury vehicle make. We're hoping the Genesis is far better than this reviewer's description, but we won't know until we get behind the wheel to judge for ourselves. Thanks for the tip, Bobae!
Dave Guilford of Automotive News sat down with Carlos Tavares, Nissan MoCo's global product chief, and the fruits of his investigative labors revealed that Infiniti has big plans over the next three years. A product push that involves a number of new models and expansion of the Infiniti brand into 90-percent of the luxury markets globally are the cornerstone of the marque, with sales likely to begin in South Korea and Russia, along with Europe in the latter half of next year.
Product-wise, Infiniti intends to bring approximately 10 new vehicles to market by the end of the decade, and although Tavares was mum on specifics, he did state that more crossovers, a "sports-oriented" car and a flagship are all part of the future lineup.
Most consumers and car enthusiasts in the U.S. have had no idea that the turmoil atop Hyundai's executive ladder had gotten this bad. Today, the chairman of Hyundai Motor, Chung Mong-koo, 68, was convicted and sentenced to three years in a South Korean prison for embezzling $67 million USD and spending it on himself and bribes for politicians and lobbyists. He was also charged with financially damaging other companies through deals that benefiited the financial standing of him and his son, Eui-son, the head of Kia Motors.
Chung was arrested last April, spent a couple months in jail, and returned to work at Hyundai in July. In his absence, Hyundai workers went on strike in South Korea and Kia's new manufacturing plant in West Point, Georgia didn't get built. He is expected to appeal the three-year sentencing and may get off with a suspended sentence and no jail time, as just-auto reports the appeal courts in South Korea often hand out more lenient sentences to business tycoons. Chung will remain free while appealing his sentence, which could take up to a year, so no disruptions are expected at Hyundai on account of the ruling at least in the near future.
They may live below a country run by a husky dictator who has a thing for BluBlockers and nuclear weapons, but South Koreans can take heart knowing that Infiniti has bestowed upon them the honor of being the first market to receive the new G35 sedan. Infiniti announced the G35's arrival in South Korea yesterday at the Seoul Trade Exhibition and Convention Center in Hagnyeoul, Seoul. Nissan's luxury division is keenly interested in presenting itself as a global brand (see Related posts below), which accounts for the decision to give South Korea's market the nod before selling the sedan in North America. The car's new generation VQ35HR 3.5-liter V6 now develops 315 horsepower, though the South Korean model will apparently only pair it with a 5-speed automatic and not the 6-speed manual that will also be offered in North America. There's also no mention of an all-wheel drive model. Instead, South Koreans can choose from a "premium" or "sports" version of the G35 sedan, the former offering a bit more luxury and the latter offering a bit more sport. Prices start at 47.5 million won ($49,780USD) for the "premium" model and 49.8 million won ($52,190USD) for the "sport" model.
The Detroit News is reporting that Hyundai has reached a tentative agreement with its labor union to end a strike that's lasted the better part of a month. The agreement calls for a 5.1-percent pay increase, which is well below the 9.1-percent increase workers went on strike to secure. The agreement still has to be voted on by the union membership on Friday before it becomes binding.
Hyundai's labor union has gone on strike every year except one since it was formed back in 1987, according to The Detroit News. This one cost Hyundai $1.33 billion and 91,647 vehicles of lost production.
It's summertime, and that means swimming, road trips and union labor strikes that disrupt the flow of exports out of South Korea. The recent strikes at auto assembly plants in South Korea have caused Hyundai to suspend vehicle exports for the time being. No worries, though. Hyundai has built up a three-month stock of vehicles Hyundais and Kias already shipped overseas. That doesn't mean the strikes aren't taking their toll, though. So far, The Detroit News reports the strikes have cost Hyundai 78,616 vehicles in lost production, which is worth about $1.13 billion.
Recognizing the ever-increasing accumulation of wealth in South Korea, Bentley Motors has decided to enter the Korean market and hock its wares next to such nameplates as GM Daewoo and Kia. Charmzone, Co. will operate in the South East Asian country as Bentley Seoul and have dedicated sales and support services in place by the fourth quarter of 2006.
Quick note of reference: In U.S. dollars one Bentley Continental GT equals 15 Kia rios.
GM Daewoo has announced the launch of its first SUV. Called the Winstorm, auto enthusiasts will immediately recognize it by its more familiar name of Captiva.
Stats, pics, and additional vehicle information can be found here and here. Analysts are reporting mixed reviews of the South Korean automaker's entrance into the SUV market, citing high gas prices and softening demand as party poopers. But the company is confident it will be able to sell over 120,000 units next year with 30,000 in South Korea alone. Says Nick Reilly, CEO of GM Daewoo, "The (SUV) segment in Korea is still very significant. It's still a very important segment in many, many markets around the world." We sure hope he's right since GM Daewoo plans to export 90 percent of the SUV through GM's Chevrolet and Holden lines.
They may live below a country run by a husky dictator who has a thing for 
Reader Spy: Chevy Volt caught on set of Transformers 2
Spy Shot: Production interior of Chevy Volt (maybe)
Rumormill: Lexus LF-A... Stillborn?
Ford reveals 2010 Mustang badge
REPORT: Chrysler may sell Dodge Viper rather than kill it
In the Autoblog Garage: 2009 Nissan Murano
In the Autoblog Garage: 2009 Dodge Journey R/T
In the Autoblog Garage: 2008 Jeep Compass Sport 4x2
In the Autoblog Garage: 2008 Porsche Carrera S
First Drive: 2009 Honda Fit Sport
