A South Korean court has ordered Hyundai Motor Co. Chairman Chung Mong-koo to pay nearly $60 million in damages to the automaker to compensate it for losses resulting from his business decisions, according to an AFP news service report.

This was the ruling handed down by the Seoul Central District Court for the civil case. In 2008, Chung was convicted of embezzlement and breach of trust. He was given a three-year suspended jail sentence but South Korean President Lee Myung-bak later pardoned him. According to the judges’ ruling, this case puts to light the problem of family-run management that focuses on the interests of major stockholders and the executives of Hyundai Motor. In 2008, a group of 14 minority shareholders and a nongovernmental group called Solidarity for Economic Reform filed the case against Chung and Kim Dong-jin, vice president of parts supplier Hyundai Mobis. Kim also was ordered to pay almost $47 million.

[via autonews - sub. required]

Tags: car news, Hyundai, hyundai charman $60 million

This entry was posted on Wednesday, February 10th, 2010 at 12:29 am and is filed under 2010, 4wheels News, Asia, Automakers, Hyundai, Year, Zone. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.