Asia-Pacific

Arrest warrant sought for Hyundai chairman

(AP)
Updated: 2006-04-27 11:39

State prosecutors Thursday requested an arrest warrant for Hyundai Motor Co. Chairman Chung Mong-koo amid a bribery and slush fund scandal that has rocked South Korea's largest automaker.

Hyundai Motor Co. Chairman Chung Mong-koo answers to reporters' question as he arrives at the Supreme Public Prosecutors Office in Seoul, South Korea , in this Monday, April 24, 2006 file photo. State prosecutors have requested an arrest warrant for Hyundai Motor Co. Chairman Chung Mong-koo, prosecutors said Thursday, April 27, 2006 amid a bribery and slush fund scandal that has rocked South Korea's largest automaker. [AP]

Prosecution spokesman Kang Chan-woo said that the arrest warrant was requested for Chung, while his son, Kia Motor's Corp. President Chung Eui-sun would continue to be investigated without being physically detained.

The request is subject to approval by the chief prosecutor. It was not immediately clear when a decision would be made on approving the request.

"It is very shocking," said Jake Jang, a Hyundai spokesman. "Hyundai executives are all in a panic. The absence of Chairman Chung is enormous and its ramifications are beyond description."

Prosecutors have been investigating the Hyundai Automotive Group since last month over suspicion it embezzled money from affiliates to create a slush fund and used the money, via at least two lobbyists, to seek favors from the government.

The move comes days after Chung spent about 15 hours at the Supreme Prosecutors' Office in Seoul for questioning over the scandal. Chung's son spent about 18 hours there for questioning last week.

Prosecutors have raided offices of Hyundai Motor and its three affiliates — Kia, logistics unit Glovis Co. and auto-parts maker Hyundai Autonet — and questioned key officials.

Hyundai spokesman Oles Gadacz said it wasn't immediately clear if Chung had an attorney.