South Korean prosecutors have requested an arrest warrant for Hyundai Motor Company Chairman Chung Mong-koo amid a bribery and slush fund scandal that has hit the country's largest car manufacturer.
Prosecution spokesman Kang Chan-woo said that the arrest warrant was requested for Mr Chung, while his son, Kia Motors President Chung Eui-sun ,would continue to be investigated without being detained.
The elder Chung is suspected of embezzling about 100 billion won (€85.2 million) in company money to create the slush fund and of breach of trust for allegedly incurring about 300 billion won of damages against the company, Kang said.
The request for the warrant is subject to approval by a court, which will question Mr Chung before deciding, Mr Kang said. The maximum sentence if charged and convicted would be life imprisonment, he said.
"It is very shocking," said Jake Jang, a Hyundai spokesman. "Hyundai executives are all in a panic. The absence of Chairman Chung is enormous and its ramifications are beyond description."
Hyundai Motor, a Global Fortune 500 company, is South Korea's fifth-largest corporation by market capitalisation.
Prosecutors have been investigating the Hyundai Automotive Group since last month over suspicion it embezzled money from affiliates to create a slush fund and used the money, via at least two lobbyists, to seek favours from the government.
The move comes days after Mr Chung spent about 15 hours at the Supreme Prosecutors' Office in Seoul for questioning over the scandal. His son spent about 18 hours there for questioning last week.
Prosecutors have raided offices of Hyundai Motor and its three affiliates and questioned key officials.