Kia has said it will indefinitely postpone the start of construction of its $1.2bn plant in Georgia, US, in the light of the on-going investigation into the activities of the company’s president, Chung Eui-sun, and his father, chairman of Hyundai Motor, Chung Mong-koo.

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Chung Mong-koo was indicted earlier this week and reports suggest that his son may also be indicted.


The company is expected, however, to go ahead and sign a final contract to go ahead with the plant later today.


A groundbreaking ceremony has been delayed and no decision has yet been made about when production could start, according to Reuters.


The postponement is also likely to delay the start of production, which was scheduled for 2009.

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Chung Mong-koo remains in detention leaving a leadership vacuum. Chung Eui-sun has been questioned but has not been detained.


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