Corp-Ethics.com - Report: Hyundai chairman Chung indicted

Company	Hyundai [Company Info]
	Track this Company (an email will be sent to you everytime a report is filed about this company)

Date	Issue	Title
16th May 2006	Other Issue	Hyundai chairman Chung indicted

Report

South Korean prosecutors have indicted the chairman of carmaker Hyundai Motor for his alleged role in a bribery and embezzlement scandal.

Chung Mong-Koo was arrested at the end of April and has been accused of creating slush funds to pay politicians and officials for business favours.

He also is accused of transferring funds and shifting corporate controls to his son, Chung Eui-Sun.

Mr Chung, 68, denies the charges that can carry jail sentences of up to life.

"Chairman Chung Mong-koo has been indicted today," said Chae Dong-wook of the Supreme Prosecutors' Office, adding that Mr Chung is accused of embezzling 103.4bn won (£52m; $109m) in company funds.

He also has been charged with raising about 130bn won of slush funds since 2001.

Hyundai is South Korea's biggest carmaker and the world's seventh, and also owns the Kia brand.

Prosecutors also plan to indict his son, Chung Eui-sun, who is president of Kia, and other company employees, Mr Chae said.

Two lobbyists were arrested in earlier this year on suspicion of receiving money from the company.

Hyundai declined to comment on the case, while analysts said it would have a limited impact on the firm's business.

In April, Hyundai made a public apology and said it Mr Chung and his son would set aside assets worth 1 trillion won.

The firm said the two men would donate their 60% stake in logistics subsidiary Glovis - which has been at the centre of the investigation - to charity.

Korean firm Samsung pursued a similar course of action in February, donating $800m in assets to a public fund after being embroiled in a number of scandals.

Other Reports on Hyundai
Date	Issue	Company	Report
5th Feb 2007	Fraud Investigation	Hyundai	Hyundai's boss gets three years
13th Jun 2006	Fraud Investigation	Hyundai	Hyundai chief admits fraud
28th Apr 2006	Other Issue	Hyundai	Hyundai boss arrested in South Korea
27th Apr 2006	Other Issue	Hyundai	Prosecutors seek Hyundai arrest
24th Apr 2006	Other Issue	Hyundai	Hyundai chief faces prosecutors
19th Apr 2006	Other Issue	Hyundai	Hyundai apologises amid scandal
28th Mar 2006	Fraud Investigation	Hyundai	Hyundai chief faces fraud probe

Related Reports from the Automobile Industry
Company	Issue	Report
Daewoo	Fraud Investigation	Fraud charges for Daewoo founder
Peugeot Citroen	Other Issue	Peugeot Citroen hit with EU fine
Bridgestone	Positive Work	Tyre maker spends ¥10m of own money on injured Dolphin
DaimlerChrysler	Other Issue	Daimler 'acts over Iraq bribes'
General Motors	Positive Work	GM chief agrees to halve salary