Hyundai execs give $1.06B after scandal

SEOUL, April 20 (UPI) -- South Korean carmaker Hyundai has apologized for a slush fund scandal, and its chairman and his son will donate $1.06 billion worth of shares in atonement.

Chung Mong-koo, chairman of the Hyundai Kia Automotive Group, and his son Eui-sun, president of Kia Motors Co., will provide a combined 60 percent stake, or 22.5 million shares in Hyundai subsidiary Glovis to the logistics subsidiary of a social welfare fund, Hyundai Motor Co. Vice Chairman Lee Jeon-kap said Wednesday at a news conference.

The Chungs are suspected of ordering the automaker's key units to create slush funds to bribe government officials and to facilitate a father-to-son transfer of management control via mergers and cross-ownership between subsidiaries, The Korea Herald reported Thursday.

"We deeply apologize for failing to live up to the public's expectations," said Lee, who heads the group's corporate planning division. "Chairman Chung expressed his sincere regrets for not being worthy of your trust despite his efforts to revive the Korean auto industry."

Despite Hyundai's announcement of the huge donation, prosecutors were scheduled to summon Eui-sun for questioning Thursday. The senior Chung, who has just returned from a three-day China trip, also may be summoned soon.