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(2nd LD) Top court sends back embezzlement case on Chung
SEOUL, April 11 (Yonhap) -- South Korea's top court Friday ordered a lower court to re-examine its ruling that Hyundai Motor chairman Chung Mong-koo give corporate lectures rather than doing community service involving physical labor for embezzlement of corporate funds.
Chung was convicted last year by the Seoul High Court of embezzling over 90 billion won (US$92 million) of company money to create a slush fund, financially hurting affiliates by engineering a transfer of stocks to his son at lower-than-normal prices and conducting other business malpractices.
The appellate court sentenced Chung to a suspended prison term, and ordered him to give speeches to business executives and write articles in the local media on "corporate transparency" while acting on his promise to donate 840 billion won (US$861 million) to social charities to indicate his regret.
Prosecutors appealed, saying the ruling veers far from previous sentences involving community service that requires physical labor at charity organizations and other non-profit outfits.
"It is not clear what the ruling exactly means by speeches and articles," the Supreme Court said, adding the sentencing might also encroach upon the freedom of speech of the accused.
The highest court ordered the lower court to deliver a "lawful and appropriate" sentence, saying, "When a ruling that orders community service is dismissed, so is a suspended jail term."
The prosecution had sought six years' imprisonment for Chung, accusing him of raising slush funds to bribe politicians and government officials in return for business favors. But they stopped short of challenging the three-year jail term suspended by the appellate court for five years.
Hyundai Motor, which was formed in 1967, is the world's sixth-largest automaker by sales volume together with its affiliate Kia Motors Corp.
Chung is the eldest surviving son of Chung Ju-young, who founded Hyundai Group, which has seven huge affiliates in insurance, shipbuilding and stocks, employing some 90,000 workers.
The Supreme Court's decision comes as the country witnesses a special counsel investigation into another high-profile corporate icon, Lee Kun-hee, the head of Samsung Group.
The country's largest conglomerate, or "chaebol" with its flagship Samsung Electronics Co. has denied allegations raised by a former in-house lawyer last year that Lee ordered the creation of a slush fund to bribe officials, investigators and other influential figures.
As the probe moves toward its final stage, Lee was summoned Friday for the second time in a week by the special counsel. The special-counsel investigation was initiated last year by the National Assembly and approved by former President Roh Moo-hyun, who stepped down in February.
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