Hyundai Motor Group Chairman Chung Mong-Koo Was Suspended
The article on Kompas daily, Friday, September 7th, 2007 interested me to write this essay of analysis on how the local authorities, in this case South Korean high court has pushed to make decision that driven by national economy interest.
“Hyundai chief given suspended sentence. Hyundai Motor Group chairman Chung Mong-koo was on Thursday, Sept 6, 2007 handed a 3-year suspended sentence by a South Korean appeals court, freeing him to continue running the world's sixth largest auto maker. 1)
“The decision to suspend the sentence for 5 years eliminates concerns over a management vacuum at the company, which is facing a slowdown in overseas sales and increasing competition. Although it suspended the 3-year jail term given in February by the Seoul Central District Court, the high court upheld the lower court's conviction of the chairman for breach of trust, embezzlement of company money and setting up slush funds 2). Investors had been concerned that uncertainties over Chung's legal battle could hamper Hyundai's expansion plans at home and abroad, even though brisk domestic sales and a smooth conclusion to this year's wage talks are brightening the outlook somewhat. Hyundai Motor Group alone accounts for about 7 percent of South Korea's total exports, which help the economy remain on a growth track, and Chung is heavily involved in most decisions at the group.
"Hyundai Motor is the top enterprise because of its ripple effect on the whole economy. The accused, Chung Mong-koo, is a symbol of Hyundai Motor and our country's automobile industry," Lee Jae-hong, the presiding judge at the Seoul High Court, said while handing down the sentence. "I did ask many people, including restaurant waiters, taxi drivers and reporters. The ordinary people leaned toward a suspended sentence," he said. "That means the accused should work hard." 3)
“Hyundai's charismatic chairman was arrested in April 2006 on allegations that Hyundai and its affiliates set up slush funds
“Hyundai chief given suspended sentence. Hyundai Motor Group chairman Chung Mong-koo was on Thursday, Sept 6, 2007 handed a 3-year suspended sentence by a South Korean appeals court, freeing him to continue running the world's sixth largest auto maker. 1)
“The decision to suspend the sentence for 5 years eliminates concerns over a management vacuum at the company, which is facing a slowdown in overseas sales and increasing competition. Although it suspended the 3-year jail term given in February by the Seoul Central District Court, the high court upheld the lower court's conviction of the chairman for breach of trust, embezzlement of company money and setting up slush funds 2). Investors had been concerned that uncertainties over Chung's legal battle could hamper Hyundai's expansion plans at home and abroad, even though brisk domestic sales and a smooth conclusion to this year's wage talks are brightening the outlook somewhat. Hyundai Motor Group alone accounts for about 7 percent of South Korea's total exports, which help the economy remain on a growth track, and Chung is heavily involved in most decisions at the group.
"Hyundai Motor is the top enterprise because of its ripple effect on the whole economy. The accused, Chung Mong-koo, is a symbol of Hyundai Motor and our country's automobile industry," Lee Jae-hong, the presiding judge at the Seoul High Court, said while handing down the sentence. "I did ask many people, including restaurant waiters, taxi drivers and reporters. The ordinary people leaned toward a suspended sentence," he said. "That means the accused should work hard." 3)
“Hyundai's charismatic chairman was arrested in April 2006 on allegations that Hyundai and its affiliates set up slush funds