TRM : 현대자동차 기부금_april19_CNN
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Hyundai says sorry, to donate $1B
Wednesday, April 19, 2006
SEOUL, South Korea (Reuters) – Hyundai Motor Co. apologized on Wednesday for
causing “concern” to South Korean society over a probe into lobbying and said it
would donate to charity about $1 billion of shares owned by its chairman and his son
in an affiliate.
The announcement came as prosecutors are investigating whether Hyundai, South
Korea’s top auto maker, and affiliates set up slush funds and were involved in
suspected illegal political lobby involving a local businessman.
“Hyundai will cooperate actively with the prosecutors’ investigation and humbly accept
the outcome of the probe,” the company said in a statement.
The 1 trillion won ($1.05 billion) worth of shares in auto shipper Glovis to be donated
were held by Hyundai Motor Chairman Chung Mong-koo, and his son,
Chung Eui-sun, the president of affiliate Kia Motors Corp., the statement said.
Shares in Hyundai, which have dropped nearly 10 percent so far this year, rose as
much as 3.5 percent by 0249 GMT following the announcement, as investors hoped
the donation would help ease pressure from the investigation. The main stock index
was up 1.22 percent.
In a similar move last February, Samsung Group and its chairman pledged what local
media said was a record donation of 800 billion won to charity as a way to atone for a
spate of bad public relations and legal troubles over cooperate governance.
At the time, Samsung said it would drop its protests against some legal claims
brought by the government against the company.
Media reports on Tuesday quoted Chae Dong-Wook, a senior prosecutor at the
Supreme Prosecutors’ office, as saying Chung Eui-sun could be summoned for
questioning on Thursday.
Prosecutors summoned Kim Dong-jin, the second highest-ranked executive
at Hyundai Motor, on Tuesday for questioning.
The ongoing probe touches on the way South Korea’s sprawling family-run
conglomerates, or chaebol, shift money within group companies, using complex
share ownership networks to keep control of their businesses.
Officials at Hyundai, which makes the Sonata sedan and Santa Fe sport utility vehicles,
have said business had not been affected by the probe, which coincides with a push
to expand overseas. The company aims to become the world’s fifth-biggest car
maker by 2010.
Hyundai says sorry, to donate $1B
Wednesday, April 19, 2006
SEOUL, South Korea (Reuters) – Hyundai Motor Co. apologized on Wednesday for
causing “concern” to South Korean society over a probe into lobbying and said it
would donate to charity about $1 billion of shares owned by its chairman and his son
in an affiliate.
The announcement came as prosecutors are investigating whether Hyundai, South
Korea’s top auto maker, and affiliates set up slush funds and were involved in
suspected illegal political lobby involving a local businessman.
“Hyundai will cooperate actively with the prosecutors’ investigation and humbly accept
the outcome of the probe,” the company said in a statement.
The 1 trillion won ($1.05 billion) worth of shares in auto shipper Glovis to be donated
were held by Hyundai Motor Chairman Chung Mong-koo, and his son,
Chung Eui-sun, the president of affiliate Kia Motors Corp., the statement said.
Shares in Hyundai, which have dropped nearly 10 percent so far this year, rose as
much as 3.5 percent by 0249 GMT following the announcement, as investors hoped
the donation would help ease pressure from the investigation. The main stock index
was up 1.22 percent.
In a similar move last February, Samsung Group and its chairman pledged what local
media said was a record donation of 800 billion won to charity as a way to atone for a
spate of bad public relations and legal troubles over cooperate governance.
At the time, Samsung said it would drop its protests against some legal claims
brought by the government against the company.
Media reports on Tuesday quoted Chae Dong-Wook, a senior prosecutor at the
Supreme Prosecutors’ office, as saying Chung Eui-sun could be summoned for
questioning on Thursday.
Prosecutors summoned Kim Dong-jin, the second highest-ranked executive
at Hyundai Motor, on Tuesday for questioning.
The ongoing probe touches on the way South Korea’s sprawling family-run
conglomerates, or chaebol, shift money within group companies, using complex
share ownership networks to keep control of their businesses.
Officials at Hyundai, which makes the Sonata sedan and Santa Fe sport utility vehicles,
have said business had not been affected by the probe, which coincides with a push
to expand overseas. The company aims to become the world’s fifth-biggest car
maker by 2010.
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