Hyundai Chairman Collared by The Man in Korea
Let's keep our fingers crossed that this will not derail the KIA plans for West Point. Peace ... or War!
Prosecutors on Friday arrested Hyundai Motor Co. Chairman Chung Mong-koo in an embezzlement and slush fund scandal engulfing South Korea’s largest automaker, an official said.
Chung’s arrest, announced by prosecution spokesman Kang Chan-woo, came late Friday, after the Seoul District Court issued a warrant.
Prosecutors suspect the 68-year-old Chung of embezzling company funds to create a slush fund and of causing damage to the company. ...
Prosecutors have raided Hyundai and three of its affiliates — Kia, logistics unit Glovis Co. and auto-parts maker Hyundai Autonet — and questioned key officials.
Prosecutors say officials embezzled money from affiliates to create the slush fund and used it, via at least two lobbyists, to seek favors from the government.
The lobbyists have been arrested on charges of receiving money from Hyundai in exchange for promises to help it win construction approvals and permits, and other business favors.
It is unclear if the lobbyists bribed government officials. It is illegal in South Korea to accept money in return for exercising influence.
Chung spent about 15 hours at the Supreme Prosecutors’ Office in Seoul for questioning earlier this week. His son, Kia President Chung Eui-sun, spent about 18 hours there last week.