Hyundai to delay Czech factory work

SEOUL, May 16 (UPI) -- South Korea's Hyundai Motor Co., whose chairman has been arrested, is indefinitely postponing construction of a car factory in the Czech Republic.

Chairman Chung Mong-koo was arrested late last month on charges of embezzling company funds worth more than $116 million.

Despite the resulting delay in breaking ground, Hyundai said it will sign a formal contract to set up the $1.3 billion plant, to be built in the eastern Czech region of Nosovice, on Thursday with high-ranking officials from the Czech government at the company headquarters in Seoul, JoongAng Ilbo reported Tuesday.

Hyundai Motor had planned to formalize the contract Tuesday.