Hyundai chief sentenced to 3-yrs in prison
Hyundai Motor Co Chairman Chung Mong-koo was convicted on Monday of embezzlement and other charges and sentenced to three years in prison over a slush fund scandal that has weighed on the world's sixth-largest automaker.
By Agencies |
SEOUL: Hyundai Motor Co Chairman Chung Mong-koo was convicted on Monday of embezzlement and other charges and sentenced to three years in prison over a slush fund scandal that has weighed on the world's sixth-largest automaker.
Prosecutors, who have been taking a hard line on corruption in South Korea, last month sought a six-year jail term, calling Chung's alleged crimes "grave".
But Judge Kim Dong-oh said the lesser sentence was justified because of Chung's "big contributions to the development of the country's economy" and noted his involvement in charity to atone for his actions.
Still, Kim said Chung's actions were "clearly criminal acts" that "greatly undermined the transparency and soundness of business management and had many adverse effects on our business culture."
Chung plans to appeal the verdict.
"We are greatly dissappointed by the court's ruling and it is Chairman Chung's intention to file an appeal," Hyundai Motor said in a statement.
Chung "retains full operational control and decision-making authority," it said, adding that Hyundai Motor said its domestic and overseas operations "will continue to function as normal".
The 68-year-old Chung will remain free for the time being and doesn't face immediate detention. He missed more than two months of work after being jailed following his April arrest and entering a hospital for a health exam. He was granted bail in June and returned to work in July.
Chung had apologized for his actions and his lawyers argued he be given a suspended sentence.
Prosecutors, who have been taking a hard line on corruption in South Korea, last month sought a six-year jail term, calling Chung's alleged crimes "grave".
But Judge Kim Dong-oh said the lesser sentence was justified because of Chung's "big contributions to the development of the country's economy" and noted his involvement in charity to atone for his actions.
Still, Kim said Chung's actions were "clearly criminal acts" that "greatly undermined the transparency and soundness of business management and had many adverse effects on our business culture."
Chung plans to appeal the verdict.
"We are greatly dissappointed by the court's ruling and it is Chairman Chung's intention to file an appeal," Hyundai Motor said in a statement.
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Chung "retains full operational control and decision-making authority," it said, adding that Hyundai Motor said its domestic and overseas operations "will continue to function as normal".
The 68-year-old Chung will remain free for the time being and doesn't face immediate detention. He missed more than two months of work after being jailed following his April arrest and entering a hospital for a health exam. He was granted bail in June and returned to work in July.
Chung had apologized for his actions and his lawyers argued he be given a suspended sentence.
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