South Korean prosecutors have decided not to indict Hyundai Construction employees involved in a case where 550 million Korean won (approximately US$410,000) was provided to a former Indonesian official during the construction of a coal-fired power plant in Cirebon, West Java, Chosun.com reports.
The International Crime Investigation Division of the Seoul Central District Prosecutors’ Office, led by Hong Yong-hwa, announced on August 26 that it would not pursue charges under South Korea’s International Anti-Bribery Act. The case involved Hyundai Construction employees accused of providing funds to a local official during protests over the construction of the power plant.
Prosecutors acknowledged that Hyundai personnel had transferred funds to a former Cirebon military governor. The payments were made during a period of intense local opposition to the power plant, marked by protests and demonstrations by residents and environmental groups that persisted for nine months after the project began.
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According to the prosecution, the former official repeatedly demanded payments amounting to 1.7 billion won, stating that the funds were necessary to suppress the protests. Hyundai reportedly negotiated with the official and ultimately agreed to provide 550 million won – roughly half the requested amount.
“The investigation confirmed the payments, but it was difficult to establish the ‘intent to obtain an undue advantage’ as required under the International Anti-Bribery Act,” prosecutors stated. “It was deemed the employees acted under duress and in the interest of ensuring personal safety and project continuity.”
Hyundai Construction and Hyundai Engineering were awarded the contract to build the Cirebon coal-fired power plant in November 2015, a project valued at US$727 million. The case emerged in 2019 when it was revealed that the former military governor of Cirebon – later convicted by an Indonesian court – had received the funds over six separate transactions.
The Seoul prosecutors added, “While we have chosen not to indict in this particular case, we will continue to respond firmly to bribery in international business dealings, while ensuring that prosecutorial powers are exercised with caution in the context of corporate activities abroad.”
Editing by Reiner Simanjuntak
