Prosecutors, 'Overseas Bribery' Hyundai Construction Employees Not Indicted... Consideration of 'Personal Safety Assurance'

[Financial News] Prosecutors have decided not to indict Hyundai Construction employees who were suspected of bribing high-ranking local officials during the bidding process for construction projects in Indonesia. The decision considered the unavoidable circumstances of providing money for local security and employee safety.
Seoul Central District Prosecutors' Office International Crime Investigation Division (Chief Prosecutor Hong Yonghwa) announced on the 26th that they decided not to indict Hyundai Construction executive A and others, who were accused of giving approximately 550 million won (violation of the International Anti-Bribery Act, etc.). A non-indictment decision is when a prosecutor decides not to charge a suspect when the case does not constitute a crime.
The prosecutors stated, "The investigation confirmed that Hyundai Construction's site office staff gave approximately 550 million won to the local regent," but they reached this conclusion considering the security situation at the time.
To this end, prosecutors conducted a multi-faceted investigation, including a search and seizure of Hyundai Construction's headquarters, securing 4,000 pages of overseas documents through mutual legal assistance, and on-site investigations. As a result, they determined that "it was an unavoidable situation where money was given to corrupt officials who actively demanded money in exchange for maintaining security to ensure the safety of employees." This does not meet the 'purpose of obtaining illicit gain' requirement under the International Anti-Bribery Act.
The prosecutors considered several factors: △ ongoing protests by local residents and civic groups for about nine months from the start of construction △ the protests escalated into violent forms with dozens to hundreds of people blocking the construction site using wooden sticks and steel pipes △ the local regent repeatedly demanded funds equivalent to 1.7 billion won, saying "If you want the protests suppressed, give us the money" △ the employees initially refused but eventually agreed to pay half for the sake of employee safety.
This case was revealed during local investigations and trials in Indonesia. In May 2019, the Indonesian court sentenced former Cirebon Regent Sunjaya Purwadisastra to imprisonment for bribery, stating in the verdict that Hyundai Construction delivered a total of 550 million won to the regent over six occasions.


scottchoi15@fnnews.com Choi Eunsol Reporter