Hyundai’s boss found guilty, gets three year jail term

Hyundai Motor Group’s head Chung Mong-koo, has sentenced to three years in jail by a South Korean court on charge proven of breach of trust and embezzling company funds. Chung was guilty of raising $110m illegally for personal use and for paying lobbyists. The verdict comes as a big blow to the world’s sixth-largest carmaker, which is grappling with a stronger local currency and a disruptive labour union. It will also rekindle concerns about a management vacuum at the Korean carmaker, which reported a 34 per cent slump in last year’s profit. The Government prosecutors had demanded a six-year jail term for Chung Mong-koo, but Chung’s big contributions to the development of the country’s economy and his involvement in charity came to his rescue. Experts worried that the imprisonment could harm South Korea’s car sector as well as country’s economy too. Shares in Hyundai Motor Company were down 2.44%.