Asia Motors Duped $200 Million in Brazil

Asia Motors Co. lost 200 million dollars due to its Brazilian importer and partner's misappropriation of funds. Seoul District Prosecutor's Office indicted Chun Jong Jin, the chairman of AMB, Asia Motors' partner in Brazil, on January 7.
In 1996, Chun imported 20,000 cars worth 210 million dollars from Asia Motors on credit but paid only 30 million dollars and did not pay the remaining 180 million dollars.
However, Hyundai, Asia Motors new owner, announced that it will continue the plan to build a local manufacturing factory in Brazil but its future is not clear.
It needs 500 million dollars worth of investment to build this factory. Hyundai will have to almost bear the whole construction cost because AMB does not have any funds.
Nobody is expecting that the factory can be profitable because various companies including Ford Motors have already entered the Brazilian market. If Hyundai does not rectify this problem soon, car exports to Brazil will halt.