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Hyundai’s Chung Avoids Jail Time

Instead of giving lectures and writing articles as required in the original sentence handed down last year, Chung now must perform 300 hours of community service.

Hyundai-Kia Automotive Group Chairman Chung Mong-koo again is spared a jail sentence by the Seoul High Court, which upholds his 3-year suspended sentence for embezzlement and breach of fiduciary responsibility.

However, the court rules that instead of giving lectures and writing articles as required in the original sentence handed down last year, Chung must perform 300 hours of labor in stipulated community service.

The court also upholds the previous ruling Chung must donate some 840 billion won ($827 million) to charity, which Chung has promised to do.

Hyundai Motor Co. Ltd. spokesman Jake Jang, who was in the court with Chung, tells Ward’s community service typically involves working in orphanages, helping senior citizens in homes for the elderly or doing environmental work such as planting trees in Korea’s successful reforestation and greening program.

“The chairman was happy with this ruling by the court, and I’m sure he will serve society well in community service as the court has ruled and that he will keep his promise to make the donation,” Jang says. “We’re back on our feet and ready to go again. We can take hold of our company and focus our efforts squarely on making (Hyundai-Kia) a global leader.”

During investigations leading to his trial, Chung spent more than two months as a prisoner held in solitary confinement in the infamous Seoul Detention Center where felons serve their sentences.

He eventually was released on bail and in February 2007 was sentenced to three years in jail.

Chung successfully appealed the sentence and was given a 3-year suspended sentence, community service involving speech writing and lectures and ordered to contribute to charities.

The prosecutors office quickly appealed the ruling to the Supreme Court of Korea saying the sentence was too lenient and requested a 6-year jail term, which is what they sought in their original complaint.

Two months ago, the Supreme Court ordered the Seoul High Court, which had heard Chung’s appeal, to retry the case.

Chung’s lawyers had argued that while Chung had admitted he knew a slush fund existed he never used any of the money personally and was not directly involved in the fund or its disbursements.

Presiding Judge Kil Ki-bong agreed with that assessment.

“The defendant did embezzle a large sum of money, but it was mostly used in running the business, not for personal purposes,” he said in announcing the new sentence.

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