The arrest of the head of the carmaker Hyundai in South Korea has raised
questions over the future of a major investment deal in the Czech
Republic.
Earlier, before the arrestm, Czech Prime Minister Jiri Paroubek had said
that he would be prepared to go to South Korea to seal an agreement with
Hyundai on its first European
car plant in the Czech Republic but the escalating corruption scandal in
South Korea could have unforeseen consequences, with Hyundai's boss
remanded in custody.If the Czech prime minister or the minister for trade
and industry do fly to Seoul to finalise an agreement on the billion
dollar Czech car plant, they
will now presumably deal with Kim Tong-Chin. He will be taking over
Hyundai in the
interim. The Czech government has not received offiicial word from Hyundai
yet.
The Czech prime minister and others have been intent on quelling fears
that the corruption scandal could cause the cancellation of the Czech
project. The launch ceremony for the Czech plant at Nosovice, in the east
of the country, was originally scheduled for May 17th. A top Hyundai
executive has suggested that the investment in the Czech Republic could be
postponed indefinitely. The Czech plant - expected to provide 3,000 direct
and 10,000
indirect jobs - was due to start production in 2008.