Hyundai Shocked by Chairman’s Arrest

The Hyundai Automotive Group is in shock at the news of the prosecution’s decision to arrest chairman Chung Mong-koo.

Executives and employees of Hyundai Motors will have to face the company’s worst-case scenario regarding the investigation of their chairman unfolding before their eyes. Workers at Hyundai Motors’ Ulsan plant spent a rough day yesterday worrying about the future of the company.

“We had hoped that we would be able to avoid the worst, but now that the hope is gone, we are at a loss for what to do. We place our last hope on the court’s warrant substance examination,” said one executive.

Chairman Chung showed up at his office as usual yesterday and was briefed on current management conditions, while other executives, including vice chairman Kim Dong-jin, gathered early in the morning to discuss countermeasures.

The business circle, which had been asking the prosecution to show leniency for Chung, expressed their disappointment at the prosecution’s decision.

In its response to the news, the Federation of Korean Industries (FKI) said it is truly disappointing that the arrest warrant was issued despite the request of the five major business organizations and Hyundai’s suppliers. It said, “We hope that labor and management of Hyundai Motor Company will work together to address their current challenge.”

The Korea Chamber of Commerce and Industry (KCCI) commented that since Hyundai Motors is honestly reflecting on its misbehavior and has pledged transparent management, it should be shown mercy for the benefit of the national economy.

Chairman Lee Du-chul of the Ulsan Chamber of Commerce and Industry also asked for mercy, saying that Chung’s arrest would dampen Ulsan’s economy.

“It is unfair that Professor Kang Jung-gu, who greatly undermined the country’s fundamental order, was not arrested because he was backed by the justice minister, and Chairman Chung, who is unlikely to run away during an investigation, should be arrested,” said one executive of a large conglomerate.

Meanwhile, civic groups showed mixed responses.

Citizens United for Better Society said the prosecution should have taken into account the social and economic costs of Chung’s arrest. The People`s Solidarity for Participatory Democracy thought differently and said, “It is positive that the prosecution broke away from wrong investigative practices of the past to strictly enforce the law.”

The Fédération Internationale de Football Association (FIFA) sent a letter to Hyundai Motors expressing its concern about the investigation into the official sponsor of the 2006 World Cup in Germany. FIFA wrote that it is worried that the current investigation might cause trouble with the sponsorship of Hyundai Motors that is critical for the World Cup.