The chief of South Korea's top automaker Hyundai Motor promised Tuesday to honour his pledge to donate about one billion dollars to charity as he appealed against a jail sentence for embezzlement.
Chung Mong-Koo submitted a written pledge to the Seoul High Court through his defence lawyer along with a copy of his bankbook which showed a cash deposit of 60 billion won (64.5 million dollars) as the first installment.
The tycoon offered to donate shares worth one trillion won (1.07 billion dollars) to charity in April last year when he was arrested, apparently hoping such a gesture will mitigate his punishment.
A court in February sentenced him to three years in jail for breach of trust and embezzling 90 billion won in company funds through fraudulent accounting. Chung, 68, who is free on bail, has appealed the ruling.
During a third appeal hearing Tuesday, Chung said he would donate the money in installments over the next seven years, including 120 billion won this year alone.
He said much of the money would be used to build art and cultural facilities in Seoul and elsewhere.
While answering questions by his defence lawyers, Chung said he had already deposited 60 billion won in cash with a bank as the first installment.
“Is it true that you repent your past wrongdoings and you are determined to strive to make the Hyundai Automotive Group a more transparent and globally competitive company?” a defence lawyer asked Chung.
“Yes, indeed,” Chung said.
The lawyer said Chung also wanted part of the money to be used for the protection of the environment.
Hyundai said earlier that the tycoon and his son, Chung Eui-Sun, would donate their 60 percent holding in Glovis, a logistics unit of Hyundai Motor.
The 22.5 million shares are currently worth about one billion dollars.
The 35-year-old son, who heads Hyundai's affiliate Kia Motors, is being groomed to succeed his father as head of the world's sixth-largest auto group.
Yu Ji-Soo, head of the Korean Academy of Auto Industry testified Hyundai owed much to Chung's strong leadership for its spectacular growth over the past decade.
Another witness said Chung was leading South Korea's efforts to host 2012 world trade expo in the southern port of Yeosu and asked the court to show leniency.
Prosecutors have accused the Chung family of raising millions of dollars for a slush fund through Glovis to bribe government officials, politicians and bankers in return for business favours.
The scandal also sparked allegations about a planned father-to-son transfer of control of Hyundai.
Chung senior, at the first appeal hearing in March, pleaded for a second chance and said he was not directly involved in the embezzlement of company funds.
