Hyundai chief Chung in India

Convicted chaebol chief makes first overseas trip.

Chung Mong Koo, chairman, Hyundai Motor Company, South Korea's largest automaker and the sixth largest in the world, arrived in India tonight, his first overseas trip after he was given three years' prison term for his conviction in an embezzlement case two weeks ago.

Chung will be heading straight to Hyundai Motor India (HMIL) manufacturing facility in Chennai and will oversee the massive expansion plans undertaken by the company since last year.

In a complete departure from his earlier stance, he is not expected to visit Delhi during his week-long sojourn in India, and will be confined to the HMIL's production facility in Chennai.

Chung had met President A P J Kalam and Prime Minister Manmohan Singh on his previous visit on September 20 last year and discussed the scope for further growth of his company's operations in India. He had also outlined his comprehensive investment plans for India to maintain his position as the number one car exporter from India.

During this visit, he will spend his entire week in Chennai. HMIL officials refused to comment on the visit of Chung Mong, but confirmed that he will not be meeting any government official or any local leaders in Tamil Nadu.

"He would be confined to the manufacturing base and will remain involved with the business plans and marketing initiatives for Hyundai products and will also focus on the export strategy, as India serves as a major manufacturing base for Hyundai's exports to over 60 countries worldwide," said a senior HMIL official. Chung Mong will oversee the major expansion plans undertaken by HMIL in Chennai.

The company plans to start its next plant and double its production capacity to 600,000 units by the third quarter this year, half of which are meant for exports. Hyundai Motor India had registered total sales of 299,513 vehicles in the calendar year 2006, an increase of 18.5 per cent over 2005. In the domestic market it clocked a growth of 19.1 per cent, with 186,174 units, while overseas sales grew by 17.4 per cent, with exports of 113,339 units.