Tuesday 16 February 2010

Hyundai chairman ordered to repay £38m

The chairman of Hyundai has been ordered to repay the company £38m to compensate it for losses resulting from his business decisions.

The ruling follows as Chairman Chung Mong-koo 2008 conviction for embezzlement and breach of trust, for which he was given a 3 year suspended jail sentence before being pardoned by South Korean President Lee Myung-bak.

"This is a case that reveals the problem of family-run management that focuses on the interests of major stockholders and the executives of Hyundai Motor," the judges' ruling said. One of the groups that filed the civil law suit, Solidarity for Economic Reform, called the penalties too low and said it would appeal to a higher court. It wanted a fine of more than £300m to be imposed.

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