Hyundai chief to honour cash pledge

SEOUL: The chief of South Korea's top automaker Hyundai Motor promised on Tuesday to honour his pledge to donate about $1 billion to charity as he appealed against a jail sentence for embezzlement.

Chung Mong-Koo submitted a written pledge to the Seoul High Court through his defence lawyer along with a copy of his bankbook which showed a cash deposit of 60 billion won ($64.5 million).

The tycoon offered to donate shares worth one trillion won ($1.07 billion) to charity in April last year when he was arrested apparently hoping such a gesture will mitigate his punishment.

A court in February sentenced him to three years in jail for breach of trust and embezzling 90 billion won in company funds through fraudulent accounting.

Chung (68), who is free on bail, has appealed the ruling.

During a third appeal hearing today, Chung said he would donate money in seven years, including 120 billion won this year.

He said part of the money would be used to build art and cultural facilities in Seoul and elsewhere.

Hyundai said earlier that the tycoon and his son, Chung Eui-Sun, would donate their 60 per cent holding in Glovis, a logistics unit of Hyundai Motor.

The 35-year-old son, who heads Hyundai's affiliate Kia Motors, is being groomed to succeed his father as head of the world's sixth-largest auto group.

Prosecutors have accused the Chung family of raising millions of dollars for a slush fund through Glovis to bribe government officials, politicians and bankers in return for business favours.