Hyundai boss sentenced for slush-fund crimes

Hyundai Motor Chairman Chung Mong-koo was sentenced to three years in prison after being convicted today of embezzlement over a slush fund scandal.

Prosecutors, who have been taking a hard line on corruption in South Korea, last month sought a six-year jail term, calling Chung’s alleged crimes “grave.”

However, Judge Kim Dong-oh said the lesser sentence was justified because of Chung’s “big contributions to the development of the country’s economy” and note his involvement in charity to atone for his actions.

Still, Kim said Chung’s actions were “clearly criminal acts". Chung had apologised for his actions and his lawyers had argued he be given a suspended sentence – meaning he would not actually serve prison time unless involved in other crimes.

Chung will appeal the verdict, Hyundai Motor said.

“We are greatly disappointed by the court’s ruling and it is our intention to file an appeal,” Hyundai Motor spokesman Oles Gadacz said.

Chung will remain free on bail for the time being and does not face immediate arrest.