The boss of Hyundai motor group faces arrest on charges of embezzlement, it has emerged.
The Korean car giant has been under investigation for buying business favours from politicials and local officials. Now presecutors have asked for an arrest warrant for its Chairman, Chung Mong-koo. They also plan to indict his son, Chung Eui-sun, who is boss of Hyundai's sister firm Kia Motors, but he is unlikely to be detained.
Mr Chung and his family have already donated $1 billion to charity in a bid to apologise for the scandal. But senior prosecutor Chae Dong-Wook told media this morning that Mr Chung is under investigation for 'raising $106m (£60m) in slush funds and embezzling it.'Hyundai spokesman Jake Jang told the Associated Press: 'Hyundai executives are all in a panic. The absence of Chairman Chung is enormous, and its ramifications are beyond description.'
The news wiped three per cent off Hyundai's share price, according to news agency AFP.