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[March 28, 2006]

CEO of Hyundai Motor unit arrested on embezzlement charges

(Asia In Focus Via Thomson Dialog NewsEdge)SEOUL, March 29 Asia in Focus - The chief executive of GLOVIS CO., a logistics arm of the HYUNDAI MOTOR GROUP, was formally arrested and detained on embezzlement charges related to a snowballing slush fund scandal involving arrested lobbyist Kim Jae-rok. The Seoul Central District Court approved the prosecution's request for an arrest warrant against Lee Ju-eun, president and CEO of Glovis, charging him with embezzling 6.98 billion won (US$7.3 million) in company slush funds.


* The 60-year-old Lee, a confidant of Hyundai Motor Group Chairman Chung Mong-koo and his only son, Chung Eui-sun, is suspected of pocketing 2.21 billion won from the slush fund raised through fake freight transactions with one of Hyundai's subcontractors between 2001 and 2005, prosecutors said.

* He is also accused of raising and embezzling an additional slush fund worth 4.77 billion won between 2003 and 2006 through phony business deals with a U.S. firm, they said.

SUMMARY

CEO of Hyundai Motor unit Glovis Co arrested on embezzlement charges related to slush fund scandal

ASIA IN FOCUS

29-03 1221

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