Seoul (Asianews/Agencies) - Chung Mong-koo, chairman of Hyundai, Korea’s largest automobile factory, was today condemned to three years in prison for embezzling company funds.
Chung, 68 years, was found guilty of using the money for personal reasons and also to bribe politicians.
The prosecution had asked for six years but the judge opted to hand down a lesser sentence because of Chung’s “big contributions to the development of the country's economy”. The Hyundai chairman has apologised for his actions. Thanks to his commitment to several charitable causes, he will probably get off with a suspended sentence meaning he will not go to prison unless he commits other crimes.
Prosecutors said Chung had used shady means to raise 103.4 billion won (around 8.5 million euros) from Hyundai affiliates from which he spent nearly 70 billion won for private interests.
Chung was also convicted of inflicting financial damage on affiliates through deals and arrangements that boosted himself and his son, Chung Eui-sun, who heads Kia Motors.
Shares in Hyundai Motor fell 2.6% to 68,000 won today. Some analysts believe Chung’s conviction will negatively influence the image and business of Hyundai.