The chairman of South Korea's Hyundai Motor Co Ltd, indicted on charges of embezzling company funds, has requested bail, lawyers representing the head of the country's top automaker said on Saturday.
Chung Mong-koo, 68, has been in detention after he was arrested in late April on allegations Hyundai Motor and its affiliates had created slush funds to offer cash for political favours.
Some analysts have been concerned the continued detention of Chung, known for his robust day-to-day management style, could create a leadership vacuum and delay the group's ambitions to become the world's number-five auto maker by 2010 in terms of sales volume.
"Chairman Chung Mong-koo is old and his health condition is worsening with high blood pressure, while we think there are significant side effects from the management vacuum amid a falling exchange rate, high oil prices and difficulties in running business overseas," a group of lawyers representing Chung said in a statement.
"Therefore, we could not delay applying for bail any further." KBS television news reported that the court's decision whether to refuse or grant bail would be made later next week, adding that the prosecutor's office was likely to file an objection to bail.
Chung is accused of breach of trust and embezzling 103.4 billion won ($109.4 million) in company funds, some for personal use, and for incurring losses at group companies by forcing them to support weaker affiliates, a senior prosecutor said last week.
Along with its affiliate, Kia Motors Corp, Hyundai Motor group is the seventh-biggest auto maker in the world by sales. The probe, which officially started on March 25, has touched on how the country's sprawling family-run conglomerates, or chaebol, shift money within group companies, using complex share ownership networks to control their business.
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