Asia-Pacific

Hyundai Chairman to be arrested

(Reuters)
Updated: 2006-04-28 20:35

South Korea has issued a warrant to arrest Chung Mong-koo, the chairman of Hyundai Motor group, on charges of misusing company funds, a senior prosecutor said on Friday.

Chung Mong-koo, the chairman of South Korea's Hyundai Motor group, leaves the Seoul Central District Court after his court session in Seoul April 28, 2006. Chung attended a court session on Friday to review a request by prosecutors to arrest him on charges of misusing company funds, a court official said. [Reuters]

"The arrest warrant has been just issued," Chae Dong-wook, a senior prosecutor at the Supreme Prosecutors' Office, said by telephone. "Chung will be arrested around 10 p.m.."

Prosecutors are also seeking to indict Chung Eui-sun, the chairman's son and president of Kia Motors Corp., without detaining him.

Both executives were questioned in the past week over whether the Hyundai group operated slush funds and offered cash for political favours via a lobbyist.