Arrest warrant sought for Hyundai chairman
The chairman, along with his son, are likely to be booked for bribing politicians to obtain construction permits.india Updated: Apr 27, 2006 14:43 IST
The South Korean public prosecutor's office has sought an arrest warrant for Hyundai Motor Group chairman Chung Mong Koo on charges of corruption.
Chung and his son, Eui Sun, president of Kia Motors Corp, an affiliate of Hyundai, are both accused of creating a slush fund to bribe politicians and government officials for favourable treatment and policies.
Eui Sun will be indicted without detention on the same charges, prosecutors said.
Prosecutors claim that the father and son used about 110 billion Won ($116 million) since 2002 to bribe officials and politicians to obtain construction permits, help in reducing debts and other favours for ailing subsidiaries.
The elder Chung, 65, who was questioned for 15-hours on Monday, is also being investigated over whether he carried out illegal transactions so that the leadership of Hyundai could be transferred to his son.
Eui Sun, 35, underwent questioning last week, a day after Hyundai apologised for the scandal and announced that the two Chungs would donate 1 trillion won ($1 billion) to charity in a goodwill gesture.
First Published: Apr 27, 2006 14:43 IST