Kia Motors' head banned from leaving South Korea amid slush fund probe

<p>Prosecutors said Tuesday they have banned the president of Kia Motors Corp., a Hyundai Motor Co. affiliate, from leaving the country amid a widening probe into suspicions South Korea's largest automaker allegedly created slush funds to bribe government officials.</p><p>Kia Motors president Chung Eui-sun _ son of Hyundai Motor chairman Chung Mong-koo _ is prohibited from leaving the country, a spokesman at the Supreme Prosecutors' Office said.</p><p>Kia announced plans last month to build a plant at West Point, Ga.</p><p>The spokesman, who requested anonymity citing prosecution policy, didn't specify under what suspicions the exit ban was placed on the junior Chung. Hyundai is South Korea's largest automaker.</p><p>The prosecution's decision follows Chung Mong-koo's departure Sunday to the United States where he is expected to visit a Hyundai Motor factory in Alabama. The company said Chung's one-week trip had been planned before the investigation was launched last month.</p><p>Prosecutors have raided offices of Hyundai Motor and its three affiliates _ Kia, logistics unit Glovis Co. and auto-parts maker Hyundai Autonet _ and questioned key officials as part of the probe.</p><p>The Glovis head was arrested last week on charges of embezzling company money to create slush funds.</p><p>The investigation grew out of a scandal surrounding a jailed lobbyist, Kim Jae-rok, who was arrested last month on charges of receiving money from businesses in exchange for promises he would use his connections with influential figures to win favors.</p><p>Hyundai Motor is suspected of paying Kim millions of dollars from slush funds in pursuit of his influence in construction approvals and permits.</p>

http://accesswdun.com/article/2006/4/126759