By DPA
Seoul : A South Korean appeals court Thursday gave a suspended sentence to Hyundai Motor Co chairman Chung Mong Koo for embezzling money from South Korea’s largest automaker, Yonhap news agency reported.
The Seoul High Court convicted Chung, but gave South Korea’s richest man five years probation, setting aside the sentence to three years in prison handed down in February by a lower court.
The prosecutors had sought six years jail.
Chung, 69, has been ordered by the court to give lectures to businessmen and submit articles to newspapers on the importance of management abiding by the law, reported Yonhap. He was also reminded of an earlier pledge to donate up to $1 billion to charity.
The tycoon, who has been free on bail since his arrest in June 2006, can stay on as head of the world’s sixth-largest automaker.
Chung’s powerful position influenced the court, with presiding judge Lee Jae Hong saying in his verdict that “I could not help worry about the economic danger the country might face if the accused is put into a jail.”
“We are relieved,” said a company spokesman in Seoul. “We can now devote our full energies to addressing the numerous challenges that face us and building a global brand.”
Chung was found guilty of breach of trust and embezzlement of 90 billion won ($96 million). The court found Hyundai funnelled money into slush funds that were used to bribe politicians and government officials and give undeclared bonuses to employees.
In his first trial Chung said he knew the funds were being diverted and took responsibility as head of the company.
Also Thursday, Hyundai Motor Group and four units were hit by a 60 billion won ($63.9 million) fine for “unfairly” supporting other units by South Korea’s Fair Trade Commission, reported Yonhap.
The antitrust watchdog said it fined the auto giant and four affiliates for unfair support of six sister units, a breach of the country’s fair competition rules.