Hyundai Chairman finally inducted in scandal case

Prosecutors in South Korea have finally indicted Hyundai Motor Co Chairman Chung Mong-koo in embezzlement and slush fund scandal, which has rocked the country’s largest automobile manufacturer.

He was already in custody since being arrested on April 28. The charges on him are related to embezzling about $106 million in company money to create the slush fund and of breach of trust for allegedly incurring about $320 million in damages to the company.

The company is also suspected of using this money to seek special favors using help of the lobbyists. In fact, Chung’s son, Eui-son, president of Kia Motors is also being investigated.

In addition, the lobbyists have been arrested on charges of receiving money from Hyundai. They made promises related to construction approvals and permits, and other business favors.

However, it is still not clear if the money was in fact used to bribe the government officials.

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