South Korea arrests chairman of Hyundai Motor (SlushFunds/Lobbists)

[TexasLawyer]

Shoot, I thought America cornered the market on this stuff!



Saturday, April 29, 2006

South Korean prosecutors arrest chairman of Hyundai Motor

2006/4/29
SEOUL, South Korea, AP


The chairman of Hyundai Motor Co., Chung Mong-koo, was arrested Friday on suspicion he embezzled some 100 billion won (US$106 million) in company money to create a slush fund, a prosecution spokesman said.

The arrest of Chung late Friday came after the Seoul District Court earlier in the evening issued an arrest warrant for the 68-year-old head of South Korea's largest automaker, prosecution spokesman Kang Chan-woo said. Seoul District Court Judge Lee Jong-seok said after deliberating all day Friday that he decided to issue the warrant because of the "heavy" nature of the allegations against Chung.

"The suspect is denying most of the charges and is feared to destroy evidence," Lee said. Investigators say officials embezzled money from affiliates to create the slush fund and used it, via at least two lobbyists, to seek favors from the government.

The lobbyists have been arrested on charges of receiving money from Hyundai in exchange for promises to help it win construction approvals and permits, and other business favors.

<snip>

http://www.chinapost.com.tw/detail.asp?ID=81297&GRP=A

[Lasher]

1. Uh, doesn't this go on all the time legally in the USA?

I'm not saying it's right. But American companies routinely give money to lobbyists in exchange for their 'services' to win government contracts.

Whatever the operative South Korean law is, we need one like it.

[leftchick]

2. yes it does indeed

isn't meriKa great? :(