A south Korean court has found Hyundai CEO, Chung Mong-Koo, guilty of making decisions to protect managerial rights, despite knowing it could inflict damage to the company. The court has ordered that Chung Mong-Koo pay back a portion of the losses incurred by the company, totaling roughly $60 million.
A South Korean court in the Seoul district has brought a ruling against Hyundai’s CEO, stemming from a lawsuit filed by 14 minority shareholders and a non-governmental group known as Solidarity for Economic Reform, according to AFP. The lawsuit demanded top executives pay 563 billion won for the losses stemming from its risky share sales in 2001.
The lawsuit was originally filed in 2008 against both Chung and the vice president of parts supplier Hyundai Mobis, Kim Dong-Jin. The lawsuit was based around a series losses that Hyundai incurred due to the sales of shares of affiliates Hyundai Airspace and Aircraft Co. and Hyundai Hysco.
“The court has recognized the fact that Chung made Hyundai Motor participate in the share sales to prevent the threats to the Hyundai Group’s managerial rights, although it could inflict damage on his company,” Yonhap news agency quoted the judge as saying during the ruling.
In addition to Chung Mong-Koo being fined $60 million, vice president Kim was also ordered to pay an undisclosed, but reportedly very minor amount of the fine. The fines ordered by the court fall far short of the amount named in the lawsuit – which would have been closer to $480 million.
This isn’t the first time Chung Mong-Koo has landed himself in trouble – in 2007 he was found guilty of breach of trust and embezzling 90 billion won of Hyundai’s funds through fraudulent accounting practices.
02/08, 3:34 PM
posted by:
JakeK66
Wow, just look at that name! It’s a good thing he doesn’t appear on the company’s commercials like Whitacre does!
02/08, 3:36 PM
posted by:
JakeK66
I see his picture and for some reason I hear the voice of Sulu in my head
02/08, 3:40 PM
posted by:
orangecones
K66…thats a racist comment. That is a proper Korean name. I am sure the Koreans go like “wtf is Whitacre?” when they hear his name.
Anyway, sucks. I guess nobody is exempt from being a greedy bastard.
02/08, 3:41 PM
posted by:
cshannon53
My prediction: DrFill will emerge like a pheonix from the fire!
02/08, 3:43 PM
posted by:
ajm11
I think they should go back and make Wagoner pay fines for making GM lose money.
02/08, 3:56 PM
posted by:
Ashes to Ashes_Dust to Dust
Something we should implement on GM execs. Wonder what hot air Lutz would have to say then? Bet he would have retired much sooner.
02/08, 4:00 PM
posted by:
beatusmongous
Wow! I guess no one these days is without their own little scandal.
Orangecones: Bigoted? Maybe. Racist? No.
I say this because he is only going after the name, not the guy nor his race, and never mentioned anything about harming or killing anyone because of their race. Yeah, it is a proper Korean name, but that doesn’t mean it doesn’t sound funny to people. Heck, Beatus Mongous is pretty laughable, and I deal with it.
02/08, 4:04 PM
posted by:
ajm11
Ashes to Ashes_Dust to Dust – Lutz was never the CEO of GM. If anyone it should have been Rick Wagoner.
02/08, 4:06 PM
posted by:
85ZingoGTR
It looks like it affects the other subsudiaries more than Hyundai Motors. Atleast the Koreans are very very protective of their biggest car company. To the point that they are willing to sue the son of the founder.
02/08, 4:10 PM
posted by:
A4
Lighten up orangecones. It’s not Jake’s fault his name sounds like a spicy pork dish.
02/08, 4:26 PM
posted by:
JakeK66
Racist? I was only saying that because many in the US would not take a spokesperson for a company seriously with that name, not making fun of it on my own. The Sulu comment I stand behind too, even though he is Japanese, not Korean.
02/08, 4:35 PM
posted by:
mobile1ph
Chi-Ching!!!
02/08, 4:42 PM
posted by:
moparsalesman1
There is a human being named kim-DONG jin lololololol
02/08, 5:10 PM
posted by:
A4
It’s okay Jake, it looks like “political correctness” got another one. **** that.
02/08, 5:11 PM
posted by:
andy
@orangecones: http://www.youtube.com/watch?v=UGqwjvPqh0Y
02/08, 5:15 PM
posted by:
Borat
@ orangecones, most of Americans are going “WTF Whitacre and what he knows about cars?” never mind So.Koreans.
And if our courts exercised the same prudence towards shareholders, I wonder how many of those upper echelon pricks would bother building careers? Imagine Wagoner giving up 110 millions he made 2000-2008 and NOT getting 22 mils parting bonus?
02/08, 6:11 PM
posted by:
yarddog82abn
You see this is why America is a great Country, WE DO NOT INCRIMINATE OUR CEO’s…
We reword them for failing, we promote them so they have a mush more better life, we give them Golden Parachutes when it’s there time to go….
WTF?….. What is wrong with the Korean Gov. do they have no morals?…
We gave them ENRON, AIG, GM, what more examples do they need?….
WTF…
02/08, 6:25 PM
posted by:
leftwingagenda
enron isn’t the best example, yard…ken lay was brought up on charges and convicted, but died before all his appeals ran out…
02/08, 9:42 PM
posted by:
Borat
Yep, but let not stop there either: Citibank, Bank of America, Merrill Lynch, Global Crossings, Sun Microsystems (yep they were bought by Oracle, but it was garage sale), ………
02/09, 12:43 AM
posted by:
saabaru1
…Chrysler
02/09, 4:31 AM
posted by:
Troll Killer
$60 million isn’t that much. 60 millions is only the amount of recalled Toyotas times 6. That’s not bad.
02/09, 11:19 AM
posted by:
RaineMan
Sounds like Hyundai needs to oust this guy before he screws up big and does something to seriously damage the good name that the company is trying so hard to build.
02/09, 12:11 PM
posted by:
muycaliente
now i’m hungry…..
kung pao chicken sounds good
02/10, 6:46 PM
posted by:
daiso
in my eyes it’s just lobbying…I would be more interested in finding out which government officials took the bribes….
02/11, 7:48 AM
posted by:
josefltbc
i’m waiting for Dr. Fill’s post.
it’ll be here any moment now.