A South Korean man, who fled to Brazil after being convicted of defrauding the country's third-largest carmaker of hundreds of millions of dollars, will be extradited in May, the Ministry of Justice said Friday.
Jeon Jong-jin, who was sentenced to 10 years by a South Korean appellate court in 2003 for inflicting US$400 million in damages on Asia Motors, a now-defunct subsidiary of Kia Motors (KSE:000270), left for Brazil in 2001 while on bail, the ministry said.
Jeon, 43, was heading the Brazilian branch of Asia Motors when he failed to pay Kia Motors US$200 million for deliveries to Brazil from 1996 to 1997, the ministry said, and further inflicted damage by causing Kia Motors to pay US$200 million for his branch expansion.
Kia Motors later went on to merge with Hyundai Motor (KSE:005380), South Korea's biggest carmaker, in 1998.
Under an extradition treaty with South Korea, Brazilian police captured Jeon in July last year, and a Brazilian court decided Monday to send him back to South Korea, the ministry said.
Jeon is expected to return to South Korea as early as next month, the ministry said, adding he will immediately start serving his sentence upon his arrival.
All Rights Reserved. Do not reproduce, copy and use the editorial content without permission. Contact us: firstname.lastname@example.org.
Anytime and anywhere to know the dynamics of China's auto industry