Prosecutors in South Korea have decided to arrest Hyundai Motor chairman Chung Mong-koo, according to Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Shares fell 3% after the news amid fears that the absence of Chung could create a leadership vacuum.


He is being charged with making a 100bn won ($US105.7m) slush fund and causing 300bn won worth of damage to the company through breach of trust. Such a crime could carry a life sentence.


Chung’s son, Chung Eui-sun, president of Kia Motor, will be indicted and not detained, the news agency added.


Prosecutors told Reuters that there could be further arrests of Hyundai executives.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Automotive industry representatives have petitioned for Chung to be treated with leniency because of his importance to the growth of the sector.


Reuters said analysts are fearful his absence could detail Hyundai’s ambitions to become the fifth largest vehicle maker by 2010 – Hyundai and Kia combined are currently seventh largest.