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Hyundai CEO Caught On Political Bribe Scandal

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posted on Apr, 28 2006 @ 10:32 AM
On March 26, police raided Hyundai offices to look for evidence of political bribery. April 27, a warrent for the arrest of Chung Mong Koo, CEO of Hyundai. The future of the company is unknown now with this recent turn of events.
Today, it looks as if Chung may have other matters to attend to. On Mar. 26, police raided Hyundai's offices, looking for evidence in an investigation of political bribery. Then on Apr. 27, the Supreme Public Prosecutors Office, Korea's highest law-enforcement body, announced it had asked a court to issue an arrest warrant for Chung on charges of embezzlement and breach of trust. The office said it also plans to indict the chairman's son, Chung Eui Sun, president of Hyundai affiliate Kia Motors in connection with the father's crime.

Prosecutors charged that Chung played an important role in raising $106 million in illegal funds that were used to pay political bribes. And they say Chung inflicted damage worth nearly $320 million to the company through irregular deals aimed at enriching the family, though prosecutors gave few details of the charges. While the judges could reject the prosecutors' request, they're likely to issue an arrest warrant this week. Chung could find himself behind bars as early as the weekend.

The company had little comment. With Chung still a free man, Hyundai wouldn't say who might take over day to day management of the group. Spokesman Oles Gadacz said only, "The decision to arrest Chairman Chung casts doubt over the future direction of the company."

Please visit the link provided for the complete story.

It pretty interesting to have them questioning the future of the compnay. A bit worrysome for the Hyundai company. What effects do you think this will have if they fall apart?

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posted on Apr, 28 2006 @ 11:50 AM
Hyundai is simply to big to collapse liek that. People in the US see the name and they think cheap cars, but its a HUGE company and a major shipbuilder. Also the actions of the chairman while if guilty are appaling its not like he is the majority shareholder or anything.

The politcal dimention is much mroe interesting. What sort of effect will it have on the SK government? And what will the North do in responce? I suspect old crazy Kim will rattle some sabres like unscheduled military manuvers or something if there is general unrest in SK over this.

[edit on 4/28/06 by FredT]

posted on Apr, 28 2006 @ 01:32 PM
Well, I don't know about the political angle, but I wonder about those folks who have the Five Year, Unlimited Mileage Warranty! Will it still be honored, anxious Americans want to know?

posted on Apr, 28 2006 @ 10:03 PM
What about the 10 year 100,000 mile warranty? To be honest, I've kind of wondered how those were financially feasable in the first place.

But hey--back on a serious note, I read somewhere that his son (President of Kia Motor Corp.) is also being investigated. Funny Because Kia shares actually went up...

posted on Apr, 29 2006 @ 03:40 AM
I don't think the company itself is in any trouble financially, so I don't expect any huge impact from the arrest of their CEO. I recall reading something late last year about them implementing many modernization and design changes over the last several years as a result of their purchase of one of the world's fastest supercomputers a few years ago. The gist of the article was to proclaim Hyundai as one of best built cars in the entire world.

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