Hyundai Shareholders Support Ex-Boss Despite Recent Fraud Conviction

Last year Hyundai Motors chief executive, Chung Mong-koo (pictured), was given a suspended three-year jail sentence after being convicted of fraud in South Korea. Despite this rather serious black mark, Hyundai shareholders supported Chung’s reinstatement to his former position at a meeting today.

Most shareholders heartily endorsed their former chief (who is also the eldest surviving son of company founder Chung Ju-young) though there has yet to be an official vote on the matter. They claim that in the current rough market conditions, Hyundai is in need of a strong and experienced leader most of all.

“Hyundai is facing risks including higher prices of oil and raw materials, a slowing global economy, checks from bigger rivals of Europe and Japan,” said the renewed Chung.

Chung’s arrival was seen as a cause of concern for officials from the National Pension Service however, a group that holds a 4.56 percent stake in Hyundai. Noting his recent legal troubles, pension officials say that they plan to vote against the move.

+ Automotive News: Shareholders re-elect convicted Hyundai boss (subscription required)

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