Hyundai will start Czech plant despite Chung’s conviction

Hyundai Motor Co., Korea’s largest automaker, plans to hold a ceremony to begin delayed construction on its $1 billion factory in the Czech Republic in April. Hyundai Motor affiliate Kia Motors Corp. will celebrate the completion of its Slovakia plant several days earlier, Hyundai Motor spokesman Jake Jang said yesterday in Seoul by phone.
The Czech plant was delayed by the trial of Hyundai Motor Chairman Chung Mong-koo, which restricted his travel. Mr. Chung, 68, was sentenced to three years in prison this week for embezzling and breach of trust. The automakers are expanding overseas to overcome currency fluctuations and trade barriers.
“The company wants to show its operation is on track even after the chairman’s conviction,” said Kim Min-jeong, who helps manage $4.6 billion in equity assets at SH Asset Management Co. as an analyst.
It’s not certain whether Mr. Chung will attend the ceremonies, Mr. Jang said. The chairman is free on bail while he appeals his sentence.
Hyundai Motor and the Czech government signed an agreement in May last year to build a 300,000-unit-a-year factory in Nosoviche, 320 kilometers (200 miles) east of Prague.
The automakers are trying to recover from falling profits as an 8.6-percent gain in the won against the dollar last year hurt their competitiveness against Japan’s Honda and Toyota.