Chairman Chung Mong-koo fined for wrong business decisions
10 February 2010

The chairman of Hyundai has been ordered to repay the company £38 million to compensate it for losses resulting from his business decisions.

The ruling follows Chairman Chung Mong-koo 2008 conviction for embezzlement and breach of trust, for which he was given a three-year suspended jail sentence before being pardoned by South Korean President Lee Myung-bak.

"This is a case that reveals the problem of family-run management that focuses on the interests of major stockholders and the executives of Hyundai Motor," the judges' ruling said.

One of the groups that filed the civil law suit, Solidarity for Economic Reform, called the penalties too low and said it would appeal to a higher court. It wanted a fine of more than £300m to be imposed.

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Comments
5

10 February 2010

A company chairman being held personally responsible for bad business decisions??? It would never happen over here!!! =D

10 February 2010

I thought the boss of a company can do what he likes with the companies money? Like bet the whole investment and assets of the company on a white xmas in 2010. Cant they do that? why not? I dont know much about business. I guess chairman is not the top of command structure?

10 February 2010

[quote roverfan1984]It would never happen over here!!![/quote]

Too true!

HyundaiSmoke - maybe you could make the man a small loan?

10 February 2010

[quote jelly7961]

Too true!

HyundaiSmoke - maybe you could make the man a small loan?

[/quote]

Probably our long lost and banned HyundaiSmoke's advice that got Hyundai into a mess!!!

R32

10 February 2010

Isn't this what is known as holding someone accountable for their actions? I rather think that if all the bank bosses, city traders, hedge funders et al, had the same accountability in their jobs the banking crisis wouldn't nearly have been as bad.

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