Hyundai Slush Fund Evidence Uncovered

The prosecution has reportedly secured evidence and statements which show that Hyundai Automotive Group Chairman Chung Mong-koo gave former and incumbent officials of the group specific instructions on creating and using a slush fund.

As this indicates that Chung did not merely just wink at the group’s creating of the slush fund but instead played a key part in generating and using it, this is expected to serve as an important variable in deciding the level of legal punishment against Chung.

The Supreme Prosecutors’ Office said yesterday that it obtained such evidence during its investigations of Hyundai Automotive Group’s core executives.

The prosecutors’ office reportedly seized business logs and notes that contained Chung’s instructions on creating a slush fund from the homes and offices of the Hyundai executives.

The business logs contain a memo that appears to be Chung’s instructions on generating slush fund, including, “20 billion won, XX(date)/ YY(month), ZZ company.”

Based on the memo, the prosecution conducted a closed inquiry into some Hyundai Automotive Group’s executives and successfully secured statements about Chung’s instructions concerning the slush fund.

The prosecution is probing into the group’s core executives, including Chae Yang-ki, president of the group’s Corporate Planning Division, and Chung Soon-won, former president of the same division, about specific circumstances in which Chung instructed the creation and utilization of the slush fund.

The prosecutors’ office is planning to conduct an additional investigation against Chae and Chung Soon-won this week and call in Chung Mong-koo to probe whether he directed the creation and utilization of the slush fund next week.

Chae Dong-wook, a Supreme Prosecutors’ Office official responsible for planning investigations, said, “The investigation into Hyundai Automotive Group’s slush fund is likely to be wrapped up this week,” adding, “We are planning to probe into where the money was spent and whether the group lobbied once the slush fund and corporate corruption investigation is almost completed.”