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Execs: Hyundai Boss Ordered Slush Fund

Posted April. 17, 2006 07:20,   


It was reported yesterday that key executives confessed to prosecutors investigating the slush fund raised by the Hyundai and Kia Automotive Group that group chairman Chung Mong-koo and his only son Chung Eui-sun, Kia Motors president, gave instructions to create the slush fund.

The prosecution is planning to determine the severity of the judicial action to place on the father and son at the end of this month.

The Central Investigation Unit of the Supreme Public Prosecutor’s Office (Chief prosecutor: Park Young-soo) reportedly secured testimony to the order of the Chungs for slush fund raising on April 13 when they were investigating Lee Jeong-dae, head of Finance and Economy Department of Hyundai Motors, and Kim Seung-nyun, head of Procurement Department. The prosecution investigated Lee and Kim and let them return home before daybreak on April 15.

The prosecution plans to summon the father and son for investigation after April 19, when senior Chung will be back after visiting China for three days from April 17.

Meanwhile, the prosecution sought an arrest warrant for former Korea Development Bank vice-president Park Sang-bae and Korea Development Bank Capital president Lee Seong-geun for violating the Act on Aggravated Punishment of Specific Crimes (by taking bribes) on April 15.

Park is under suspicion of taking over one billion won from Kim Dong-hoon (in custody), ex-president of Ahn Kwon Accounting Firm, in exchange for forgiving an affiliate of Hyundai Kia Automotive Group, Wia, 20.5 billion won debt, which could certainly be called in based on security, out of 100 billion won in debt.

Lee is suspected of having taken over 100 million won.

Tae-Hoon Lee Ji-Seong Jeon jefflee@donga.com verso@donga.com