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Made By: Hyundai Motor Company
Started Business: 1976
Corporate Official site: N/A
Dealer Official site: N/A
Note from the Editor: 01-16-07
Hyundai Motor Co. Chairman given prison term for embezzlement!
South Korea demands 6-year jail term for Hyundai head
story Published: 6/19/07
SEOUL (Reuters)
South Korean prosecutors today sought a six-year jail term for Hyundai Motor Group's chairman for embezzlement at a court hearing of his appeal against a three-year sentence handed down in February.
1967 the Hyundai Group established Hyundai Motor Company in Korea
The first Hyundai passenger car, the Pony, was introduced in 1976
and in 1986 the Excel was introduced
Hyundai's first car for the U.S. market
Hyundai cars and sport-utility vehicles
are distributed in the United States by Hyundai Motor America of Fountain Valley, Calif.
which is a subsidiary of Hyundai Motor Company
Culled from Netscape.com 01-16-07
embezzlement, Jail Term Sought for Hyundai Chairman
By JAE-SOON CHANG
SEOUL, South Korea (AP) -
Prosecutors demanded a six-year prison term against
Hyundai Motor Co. Chairman Chung Mong-koo
for embezzlement
and other charges Tuesday
adding to the woes of the largest South Korean automaker
Chung, 68, has been on trial since June on charges of illegally raising a slush fund from affiliates from which authorities say he spent 69.3 billion won (US$74 million, euro57 million) for private and other purposes, including payments to lobbyists for government favors.
He has also been charged with inflicting financial damage on affiliates through questionable deals and arrangements that allegedly protected or boosted the financial interests of him and his son, Eui-sun, who heads Kia Motors Corp., the country's second-largest carmaker. The younger Chung doesn't face trial.
``It's unavoidable to seriously punish the defendants ... because the crimes in this case are grave,'' lead prosecutor Lee Dong-ryol said at the trial, which also included other company officials.
Chung Mong-koo apologized and pledged to make Hyundai the world's No. 5 automaker if given the chance. Hyundai and affiliate Kia Motors combined currently rank sixth.
``I'm sorry for causing trouble over this case,'' he told the court.
Chung's defense lawyers called for leniency and asked for a suspended sentence in light of their client's health and the effects his conviction would have on Hyundai and the entire nation's economy.
Hyundai and Kia account for more than 70 percent of South Korea's automobile exports. Autos account for about 10 percent of South Korea's total exports.
It was unclear how the judges at Seoul Central District Court would rule. But South Korean courts have often come under public criticism for being too lenient on business tycoons after they sentenced high-profile chief executives to suspended jail terms in similar corruption cases.
The verdict and sentencing was scheduled Feb. 5.
Chung has been out on bail since late June after two months of detention following his April arrest.
The trial has cast a cloud over the company, which also is suffering from a row with its militant labor union that intensified this week with new strikes.
Unionized workers laid down tools for a total of eight hours at three factories Monday in a dispute with management over the size of a bonus payment. Though workers will not strike Tuesday, they have scheduled a longer walkout Wednesday.
On Tuesday, Hyundai Motor President Youn Yeo-chul was meeting with the head of a labor union to discuss how to end the partial walkout, the company said.
Labor troubles are a near-constant headache for Hyundai. Through 2006, Hyundai's union has gone on strike every year but one since it was established in 1987.
Public sentiment has turned against the union, with local media accusing union workers of selfishness at a time when their company is struggling with the strengthening Korean currency that hurts exporters.
01/16/07 04:47 © Copyright The Associated Press. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of The Associated Press
Hyundai Workers Begin Partial Strike
Culled from Netscape.com 01-14-07
By KELLY OLSEN
AP Business Writer
SEOUL, South Korea (AP) - Unionized workers at Hyundai Motor Co. began a promised partial strike Monday amid a dispute with management over bonuses, a union official said.
The walkout, which was approved last week by union representatives, began as scheduled Monday afternoon, said Jung Jun-yung, the head of the union's overseas cooperation department. Unionized workers plan to lay down tools Monday for a total of eight hours at three different factories.
Hyundai Motor confirmed the strike was under way, company spokesman Jake Jang said. Hyundai asked the Ulsan District Court to issue an order barring the walkout, Jang said, though added no decision had yet been reached.
Ulsan is an industrial city 260 miles southeast of Seoul where the world's sixth-largest automaker has its main factory.
Labor troubles are a near constant headache for Hyundai. The company's union has gone on strike every year but one since it was established in 1987.
Under the strike plan, workers will carry out normal shifts Tuesday, but expand the strike Wednesday to a total of 12 hours at each of the three factories. They will decide further action, if any, on Wednesday.
A total of 400 representatives voted unanimously Friday for the 44,000-strong member union to walk off the job.
Unionized workers have refused to work overtime since Dec. 28 after workers received a bonus equal to one month's salary, which they say is less than the agreed amount of a payment equal to 1.5 months.
The company says the latter total was based on an incentive to reach the company's 2006 production target and since that was not achieved because of strikes the payment was reduced.
``There would never have been a strike if the labor-management agreement had been realized,'' the union said on its Web site.
A week ago, Hyundai sued the union, seeking damages to help cover production losses caused by the refusal to do overtime.
Last year was Hyundai's worst ever in terms of strikes.
A total of four walkouts cost Hyundai 118,293 vehicles in lost production costing 1.64 trillion won ($1.75 billion), according to the company.
Hyundai was also dogged by turmoil following the April arrest and jailing of Chairman Chung Mong-koo on embezzlement and breach of trust charges related to a slush fund scandal.
Chung, 68, was released from detention in late June on bail and returned to work after spending time in a hospital. He is currently on trial and was due to appear in court on Tuesday.
Hyundai shares rose 0.3 percent Monday to close at 64,100 won ($68).
Associated Press Writer Hye-Min Kim contributed to this report.
01/15/07 08:19 © Copyright The Associated Press. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of The Associated Press
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