Prosecutors request arrest warrant for Hyundai car boss

State prosecutors today requested an arrest warrant for Hyundai Motor Company chairman Chung Mong-koo amid a bribery and slush fund scandal that has rocked South Korea’s largest car manufacturer.

Prosecution spokesman Kang Chan-woo said the arrest warrant was requested for Chung, while his son, Kia Motors Corporation president Chung Eui-sun would continue to be investigated without being physically detained.

The elder Chung is suspected of embezzling about 100 billion won (€84.9m) in company money to create the slush fund and of breach of trust for allegedly incurring about 300 billion won (€254.8m) of damages against the company, Kang said.

The request for the warrant is subject to approval by a court, which will question Chung before deciding, Kang said.

The maximum sentence if charged and convicted would be life imprisonment, he said.

Hyundai Motor, a Global Fortune 500 company, is South Korea’s fifth largest corporation by market capitalisation.