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Last Updated: Tuesday, 19 June 2007, 06:22 GMT 07:22 UK
Court insists on Hyundai sentence
Chung Mong-koo (centre) leaves the courtroom after the verdict
Prosecutors urge for a six-year sentence
The boss of Korean carmaker Hyundai has failed in his attempt to have a three year jail term suspended so that he could continue to work at the company.

Prosecutors have rejected chairman Chung Mong-Koo's plea and said he will have to serve time for embezzling $100m (53m) of company funds.

Mr Chung is on bail and helping to run the firm, one of Korea's biggest.

The prosecutors want a six year jail term, saying if he avoids prison it would harm South Korea's reputation.


"The sentence is too light" argued one prosecutor in court.

The scandal has raised concerns that the legal case is damaging to the firm's reputation, and could thwart its overseas expansion strategy.

As well as embezzling the firm's money for a slush fund, Mr Chung was accused of breaching trust.

In response to the call for a longer prison sentence, the 69-year-old boss said: "I ask for an opportunity for me to contribute to the company and the national economy one last time."

Three other officials at the firm were also convicted in February but given suspended sentences.

The firm's earnings have been slipping in recent months, dented by weaker demand and industrial action by workers.

Battered Hyundai sees profit fall
02 May 07 |  Business
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05 Feb 07 |  Business
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16 Jan 07 |  Business
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07 Aug 06 |  Business
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26 Jun 06 |  Business
Hyundai chairman Chung indicted
16 May 06 |  Business

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