Mumbai: A South Korean high court today upheld an earlier three-year suspended sentence to Hyundai Motor Group chief Chung Mong-koo for fraud, which would keep him out of jail despite pressure to crack down on corruption at the country's top firms.

"(Chung) did embezzle a large sum of money, but it was mostly used in running the business, not for personal purposes," Kil Ki-bong, the presiding judge at the Seoul High Court, said while handing down the sentence.

The ruling, however, ended concerns over a potential management vacuum at the world's sixth biggest auto maker, which faces cut-throat competition in overseas markets and a demand fall at home.

Chung Mong-koo was issued with a three-year suspended sentence for embezzlement and breach of trust last year. The Supreme Court later ruled the sentence should be reconsidered.

Chung will not have to serve time in prison as long as he obeys the law for the next five years.

The ruling comes less than two months after the chairman of Samsung Group announced he would quit office at the country's biggest conglomerate after being indicted on charges of tax evasion and breach of trust.

The ruling could, however, revive a running debate on the powerful and controversial 'chaebol' (the family-run conglomerates) in Korea which opponents say have been given kid-glove treatment.