Another Hyundai Slush Fund Confirmed

Prosecutors have confirmed that three affiliates of Hyundai Automotive Group, Kia Motors, Hyundai Mobis and Wia, created another slush fund worth tens of billions of won.

So far, the total number of confirmed affiliates which raised slush funds has increased to six companies, including the Hyundai Automotive Group and its two affiliates, Glovis and Hyundai Autonet.

The central investigation team of the Supreme Public Prosecutor’s Office called in Hyundai Automotive Group chairman Chung Mong-koo as a person under suspicion yesterday and probed into whether he directed creating a slush fund and ordered the work to go on.

Chairman Chung arrived in a black Equus at the Supreme Public Prosecutors Office, Seocho-dong, Seocho-gu, Seoul at 9:55 a.m. yesterday said, “I bow to the people and deeply apologize. I will sincerely respond to all the questions from the prosecutors’ investigation,” After saying this, he headed for the Special Investigation Room of the Central Investigation Division on the 11th floor.

Chae Dong-wook, superintendent prosecutor at the Supreme Prosecutors` Office during a briefing, said, “If Chairman Chung took the lead in all the core decision-making, there is no doubt that he knew the details on raising a slush fund and the corruption scandal related to companies,”

Prosecutors considered that the slush funds raised by Kia Motors, Hyundai Mobis and Wia are for the same use as the ones raised by the Hyundai Automotive Group, Glovis and Hyundai Autonet. So far, prosecutors confirmed that the total scales of created slush funds of the Hyundai Automotive Group are about 100 billion won.

Tae-Hoon Lee jefflee@donga.com needjung@donga.com