BEIJING, Feb. 5 (Xinhuanet) -- Hyundai Motor Chairman Chung Mong-koo was sentenced to three years in prison Monday after a South Korean court convicted him of embezzling money from the company.

File photo shows Hyundai Motor chairman Chung Mong-koo arriving for his trial at the Seoul Central District Court in Seoul, Jan. 16, 2007. (Reuters Photo) Photo Gallery>>>

    A statement issued by Hyundai said Chung plans to appeal.

    Chung was found guilty of funneling 106 million U.S. dollars in company money into a slush fund to seek government favors and of breach of trust for incurring more than 300 million dollars in damages to the company.

    Some of the questionable deals allegedly protected his financial interests and those of his son, Eui-sun, who heads Hyundai affiliate Kia Motors, the country's second-largest car maker after Hyundai, The Associated Press reported.

    Chung has admitted using affiliated companies to set up slush funds, but said he knew no details of the arrangements.

    The 68-year-old executive will continue working while the appeal to Monday's ruling is pending, the company said.

    Prosecutors had sought a six-year prison term for Chung; he had asked for a suspended sentence.

    Chung was arrested last April and spent two months in jail before being released on 1 million dollars bail. Other company officials have also been on trial.

    Hyundai is the world's sixth-largest automaker and a pillar of South Korea's economy. Hyundai Motor and Kia Motors account for more than 70 percent of South Korea's automobile exports, according to AP.

    (Agencies)