Chung Mong-koo — the Hyundai head who was given a suspended three-year jail sentence for fraud last year — is back on the South Korean automaker’s board as of Friday. Chung was re-elected thanks to strong support from Hyundai shareholders, but the country’s state pension fund strongly opposes the move.
According to Automotive News, National Pension Service — Hyundai’s sixth largest shareholder — voted against the move, due to Chung’s fraud conviction and its belief that Hyundai needs improved management.
Chung has strong connections to Hyundai as he is the eldest living son of Chung Ju-young — the founder of the Hyundai Group and Hyundai Motors.
Shareholders supported Chung — despite his fraud conviction — due to his experienced leadership. Chung will stay as chairman and chief executive until March 2011.
Hyundai is currently the world’s sixth largest automaker, with further plans to expand into developing regions.
