Hyundai's Chairman Sentenced to 3 years

A spokesperson for South Korea's top auto-maker said that the ruling was disappointing and that they would file an appeal. Chung, however, has been allowed to remain on bail while the appeal is in process.

The courts are also in a bit of a dilemma as the case, seen as a test of the court's commitment to tackle corruption, is being closely watched in South Korea. Previous similar cases have been treated with much leniency, but pressure from the public and the government has been growing with calls for stiffer penalties.

While prosecutors pushed for a six-year sentence, presiding judge at the Seoul court, Kim Dong-oh said that the lesser sentence was decided upon after having considered Chung's “big contributions to the development of the country's economy” and also his involvement in charity. Chung's lawyers also argued that he should be granted a suspended sentence because such a jail term might have dire consequences on South Korea's industry and national economy.

Reuters news agency reported a 2.44% drop in Hyundai Motor Company's shares after the verdict was given.

Hyundai, and its affiliate Kia Motors, is headed by Eui-sun, Mr Chung's son, and represents about 70% of South Korea's vehicle exports, making it a significant part of the economy.

Credits: Kr0n