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Labor Leaders are Glad to See Hyundai's Chief in Jail
PanAsianBiz ^ | June 7, 2006 | Dr. Bill Belew

Posted on 06/07/2006 10:07:38 AM PDT by G. Stolyarov II

Labor leaders in Korea are not disappointed to see Hyundai CEO, Chung Mong Koo, take a fall.

What union leaders ( I hate unions ) hope for is that this will give Hyundai Motors a chance to make another leap forward because they will be out from under the 'emperor-like' rule of Chung.

Hyundai is the world's number 7 auto-maker and Chung now owns 5.2% of it from jail. Though he owned such a small portion he had near absolute control and was even said to be a micro manager to the point of deciding what color the parts under the hood should be.

Now, investors and other stakeholders are hoping for 'greater transparency and accountability.'

Transparency and accountability are good, very good.

In the meantime Hyundai has put on hold a $2.4 billion plan for new factories.

It is now very clear who will not get a job until Hyundai gets this fiasco cleaned up.

What do you think?


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Extended News; Foreign Affairs; News/Current Events
KEYWORDS: ceo; corporation; corporations; hyundai; imprisonment; jail; korea; labor; laborunions
This is another example of economic inefficiency caused by domineering and coercive labor unions. They would rather gladly watch their company stagnate and decline than accept the leadership of a man they dislike; it is personality politics standing in the way of economic progress. I hope that Chung gets released soon, and the unions' share of power at Hyundai is reduced. See Dr. Belew's blog at PanAsianBiz
1 posted on 06/07/2006 10:07:42 AM PDT by G. Stolyarov II
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To: G. Stolyarov II

Most of Korea's business "leaders" should be in jail but that's another story.


2 posted on 06/07/2006 10:12:57 AM PDT by Chi-townChief
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To: G. Stolyarov II

It's not personality politics, they are just so entrenched and take a "us vs. them" mentality.


3 posted on 06/07/2006 10:13:04 AM PDT by DTwistedSisterS
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To: G. Stolyarov II

Hope they get it sorted out. Hyundai makes a pretty durable line. Drove an Accent for 6 years, changed the oil regularly, the tires once, and a oxygen sensor once. Nearly 100k miles and no probs. Good gas mileage and dependable. Went bang every time the trigger was pulled.

Unions...........ruefully


4 posted on 06/07/2006 10:14:20 AM PDT by petro45acp (SUPPORT/BE YOUR LOCAL SHEEPDOG! ("On Sheep, Wolves, and Sheepdogs" by Dave Grossman))
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To: G. Stolyarov II

What was he jailed for? What was his crime?


5 posted on 06/07/2006 10:16:34 AM PDT by theDentist (Qwerty ergo typo : I type, therefore I misspelll. 17,400+ snide replies and counting!)
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To: theDentist
>>>What was he jailed for? What was his crime?<<<

Evidently for...
...deciding what color the parts under the hood should be.

6 posted on 06/07/2006 10:21:37 AM PDT by HardStarboard (Hey, march some more - its helping get the wall built!)
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To: theDentist

Something about embezzlement and slush funds. Not real clear on what the actual charges are.

I also suspect that this might be a setup.


7 posted on 06/07/2006 10:38:08 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: theDentist

Ah, here we are, from Bloomberg:

Hyundai Motor's Chairman Chung Mong Koo Goes on Trial (Update1)
June 1 (Bloomberg) -- Chung Mong Koo, Hyundai Motor Co.'s chairman, goes on trial today in Seoul on charges of embezzling funds from South Korea's largest carmaker to bribe bank and government officials.

Kim Dong Oh, a judge at the 25th Criminal Division of the Seoul Central District Court, began hearing the case at 10 a.m. and will deliberate on Chung's request to be released on bail.

Chung, 68, was indicted on May 16 for misusing 400 billion won ($422 million) of Hyundai Motor's money and embezzling 120 billion won to set up a slush fund, according to court filings. Chung was aware of the fund but denies involvement in setting it up, according to his lawyer Kim Jae Jin.


8 posted on 06/07/2006 10:42:32 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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