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?
Most of Korea's business "leaders" should be in jail but that's another story.
It's not personality politics, they are just so entrenched and take a "us vs. them" mentality.
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
What was he jailed for? What was his crime?
Evidently for...
...deciding what color the parts under the hood should be.
Something about embezzlement and slush funds. Not real clear on what the actual charges are.
I also suspect that this might be a setup.
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.
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