Hyundai Chief Back in S. Korea

The head of Hyundai Motor Co. returned to South Korea today amid an investigation of allegations that the country’s dominant automaker created slush funds to bribe government officials.

Hyundai Chairman Chung Mong Koo arrived at the main international airport serving Seoul in this port city west of the capital just before dawn on a flight from Los Angeles. He was greeted by dozens of Hyundai employees who escorted him to a waiting vehicle.

Since last month, prosecutors have raided offices of Hyundai and its three affiliates -- Kia Motors Corp., logistics unit Glovis Co. and auto-parts maker Hyundai Autonet Co. -- and questioned executives.

Chung left South Korea for the United States on Sunday, prompting prosecutors to impose a travel ban on his son, Chung Eui-sun, president of Kia Motors. Prosecutors were reportedly angry the elder Chung left as the investigation was heating up.

Prosecutors have reportedly said they want to question father and son.

Hyundai said the trip was planned before the probe was launched last month. Spokesman Oles Gadacz said Friday that Chung was away for “business consultations.”

The prosecutors’ probe grew out of a scandal surrounding Kim Jae-rok, a lobbyist who was arrested last month on charges of receiving money from businesses in exchange for promises that he would use his connections to win favors.

Prosecutors suspect Hyundai of paying Kim millions of dollars from slush funds to gain his help in winning construction approvals and permits.

“We don’t know anything about the purpose of the investigation or its extent,” Gadacz said.

The head of Glovis was arrested last week on charges of embezzling company money to create slush funds.

Kia last month announced plans to build its first manufacturing plant in the United States.

A groundbreaking ceremony for the factory, scheduled for April 26, has been postponed, Kia spokesman Michael Choo said, adding that a new date has not been set.

Choo wouldn’t comment on the reason for the delay, but said construction would not be held up by the investigation.

The plant in West Point, Ga., is expected to create about 5,500 jobs.

Hyundai and Kia combined constitute the world’s seventh-largest automaker.