The chairman of Hyundai Automotive Group, Chung Mong-koo, has been arrested on corruption charges.
The chairman of Hyundai Automotive Group, Chung Mong-koo, has been arrested on corruption charges.
CARtoday.com last week reported that Chung’s arrest was subject to a court approval for his arrest warrant. The judge reportedly issued the arrest warrant because he feared Chung might flee South Korea or tamper with the evidence.
South Korea’s Supreme Prosecutor’s Office recently recommended that the Hyundai Automotive Group’s chairman be arrested. It also recommended that his son, Kia Motors president Chung Eui-sun, be indicted without arrest.
The two Chungs and other high-ranking officials were questioned recently about the creation of a slush fund that was used between the two manufacturers to get business and win political favour.
A company spokesperson has said that “all local and overseas manufacturing, sales marketing and research and development operations are unaffected by the development.”
No formal statement has been issued on the investigation, which began in March.