Prosecutors on Friday arrested Hyundai Motor Co. Chairman Chung Mong-koo in an embezzlement and slush fund scandal engulfing South Korea's largest automaker, an official said.

Hyundai Motor Co. Chairman Chung Mong-koo, center, comes out from the Seoul District Court in Seoul, Friday, April 28, 2006. Chung appeared in court Friday for a hearing on a request by prosecutors to arrest him on suspicion of embezzling company funds, a court official said. [AP]

Chung's arrest, announced by prosecution spokesman Kang Chan-woo, came after the Seoul District Court earlier issued a warrant.

Prosecutors suspect Chung of embezzling company funds to create a slush fund and of causing damage to the company.