I Will Keep My Promise to Donate 840Bil. Won: Hyundai-Kia Chairman

I Will Keep My Promise to Donate 840Bil. Won: Hyundai-Kia Chairman. May. 21, 2008 07:29. bell@donga.com.

Hyundai-Kia Automotive Group Chairman Chung Mong-koo, under indictment for embezzlement, announced that he would keep his promise to donate 840 billion won to the society, regardless of the results of his appeals trial.

At the 20th Division of the Seoul High Court (led by Judge Gil Gi-bong), Chung said, “I’ve been in deep reflection about my behavior and I apologize to the Korean people. If I am given leniency, I’ll do my best to nurture Hyundai-Kia Automotive Group into one of the world’s best car companies.”

However, prosecutors demanded six years imprisonment as they did in the first trial, saying, “Since he embezzled a significant sum of money and damaged the company’s subsidiaries, Chung should be punished accordingly.”

Chung’s lawyer asked the court for leniency, saying, “The Supreme Court overturned the sentence and sent the case back to the High Court, since it concluded that the original sentence requiring community service was illegal. Therefore, the original judgment suspending Chung’s sentence should be maintained. While Chung has been on probation, he has successfully lured the World Expo to Yeosu, and sales and operating profit of Hyundai Motor Company in the first quarter have surged.”

In response, the court asked Chung, “Are you fulfilling your promise to donate 840 billion won to society?”

Chung’s lawyer responded, “Chung will donate cash and stocks amounting to 70 billion won each year over the next 12 years. He has already donated stocks amounting to 60 billion won to the Haevichi Cultural Foundation. The foundation will use the money at its discretion.”

Chung was indicted on charges of embezzling 69.3 billion won and creating a slush fund amounting to 103.4 billion won. At his appeals trial, Chung was sentenced to three years in jail with a suspended sentence of five years. He was also ordered to keep his promise to donate 840 billion won as well as provide lectures. But, the Supreme Court sent the case back to the High Court since it judged that the required community service was illegal.

Sentencing for Chung and the group’s vice chairman will be held at 2 p.m. on June 3.