Chung Mong-koo, chairman of the
Motor Group, will be indicted by the
government Tuesday, as the Hyundai bribery scandal worsens. A spokesperson for the state prosecutor's office said to
that additional indictments will be forthcoming for the chairman's son (president of Hyundai's Kia Motors subsidiary) and other Hyundai group officials. Hyundai's share price took another hit on the news (highlighted area in the chart above).
The charges center on the misappropriation of company funds and bribery of government officials. Investment analysts are considering the possibility that the scandal could leave a leadership vacuum at Hyundai, just when the company is in a push to become the fifth-largest global automaker by 2010 (it is currently number seven).