The chairman of Hyundai Motor Company, the South Korean manufacturer, has been sentenced to three years in jail for embezzlement and breach of trust.

Chung Mong-koo, 68, was accused of amassing a multi-million dollar slush fund for personal use and to pay lobbyists and politicians.

A spokesman for Hyundai said the ruling was disappointing and an appeal would be filed.

Mong-koo was accused of embezzling £56 million from company affiliates.

Some of the money was allegedly used to pay off politicians and government officials, and also help smooth the way for Mong-koo's son to take control of the auto group.

"The court decided a strict execution of law is necessary to eradicate illegal and anti-market practices in the past and help South Korea build a more advanced economy," Kim Dong-oh, presiding judge at the Seoul court, said.