Hyundai Motor chairman Chung gets 3 year''s jail for embezzlement

05 February 2007

Mumbai: A South Korean court has sentenced Hyundai Motor Corporation chairman and South Korea''s richest man Chung Mong-Koo to three years in prison for embezzling funds that were used for illegal political donations.

Chung, 68, was also found guilty of breach of fiduciary duty, Judge Kim Dong Oh of the Seoul Central District Court said. Chung can appeal the verdict and will be allowed to remain out on bail, the judge said.

H ead of the Seoul-based carmaker, the world''s sixth largest auto firm, Hyundai, Chung Mong-Koo, was expecting a suspended sentence.

Chung has been on trial on charges, including embezzlement of company funds, incurring losses at group companies and operating slush funds.

Chung''s lawyers said they were considering whether to appeal Chung will continue to run the company while he appeals, the South Korean company said. However, a second trial and court restrictions on his overseas travel may hamper Chung''s expansion plans for Hyundai Motor and affiliate Kia Motors Corporation.

Chung is worth at least $2.2 billion, based on equity holdings.