Hyundai Motor Co. Chairman Chung Mong-koo was released by prosecutors early
Tuesday after appearing 15 hours earlier for questioning about a slush fund
scandal engulfing South Korea's largest automaker.
Hyundai Motor Chairman
Chung Mong-koo walks to leave the Supreme Public Prosecutors office in
Seoul, Tuesday, April 25, 2006. Prosecutors summoned Chung for questioning
Monday amid a slush fund scandal engulfing South Korea's largest carmaker.
[AP] |
Chung left the Supreme Prosecutors' Office in Seoul about 1 a.m., said
Hyundai Motor spokesman William Park. On Monday, Chung apologized to South
Koreans and said he would cooperate with prosecutors.
Prosecutors questioned Chung's son, Kia Motors Corp. President Chung Eui-sun,
last week as part of the investigation. Kia is an affiliate of Hyundai.
Prosecutors have been investigating the Hyundai Automotive Group over
suspicion it embezzled money from affiliates to create a slush fund and used the
money, via at least two lobbyists, to seek favors from the government.
Over the past month, prosecutors have raided offices of Hyundai and its three
affiliates — Kia Motors, logistics unit Glovis Co. and auto-parts maker Hyundai
Autonet — and questioned key officials.
The lobbyists have been arrested on charges of receiving money from Hyundai
in exchange for promises to help the company 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.
Earlier this month, prosecutors questioned two other top Hyundai executives
as well as a former deputy governor of the state-run Korea Development Bank.
Hyundai announced last week amid the scandal that the two Chungs planned to
donate $1.1 billion worth of personal assets to society. The company also said
it "apologizes" for causing concerns to the public over the scandal.
Kia last month announced plans to build its first manufacturing plant in the
United States. The West Point, Ga., plant, scheduled to begin production in
2009, is expected to create about 5,500 jobs.
Hyundai Motor has a U.S. factory in neighboring Alabama.