April 20, 2024

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[THE INVESTOR] Hyundai Motor Group Chairman Chung Mong-koo on Dec. 6 denied his involvement in giving advertisement orders to an ad agency run by Cha Eun-taek, a key figure in the influence-peddling scandal involving President Park Geun-hye and her longtime confidante Choi Soon-sil.

“I am not directly related to the advertisement deal and I don’t remember,” Chung said during the parliamentary probe into the presidential scandal. “The company’s size is large and we make 8.15 million cars a year. So it is difficult to remember all advertisements.”

Park Hae-mook/The Investor

Hyundai Motor is alleged to have given major advertisements worth 6.2 billion won (US$5.29 million) to a new PR firm Playground Communication, operated by Cha, this year, following the president’s request.

During the hearing, Chung also refuted accusations that he was coerced by the president to strike a 1.05 billion won supply deal with KD Corporation, a company owned by Choi’s associates, saying “it is the first time I am hearing about the matter.”

Hyundai Motor Group is also accused of donating 12.8 billion won, the second largest amount after Samsung Group, to two dubious foundations set up by Choi using her presidential ties, in return for business favors.

But Chung declined to further comment on the matter.

The 78-year-old Chung was among nine tycoons who were grilled at the assembly, including Samsung Electronics Vice Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, LG Group Chairman Koo Bon-moo, Lotte Group Chairman Shin Dong-bin, Hanwha Group Chairman Kim Seung-youn, Hanjin Group Chairman Cho Yang-ho, CJ Group Chairman Sohn Kyung-shik and GS Group Chairman Heo Chang-soo, who also heads the Federation of Korean Industries.

By Ahn Sung-mi (sahn@heraldcorp.com)