The Seoul District Court issued an arrest warrant Friday for Hyundai Motor Co. Chairman Chung Mong-koo in a bribery and slush fund scandal engulfing South Korea's largest automaker.

Judge Lee Jong-seok told The Associated Press that he decided to issue the warrant because allegations against Chung are "heavy" and there are concerns that he may destroy evidence if he is not detained.

Prosecutors on Thursday sought the warrant to arrest Chung on suspicion of embezzling company funds to create a slush fund and of damaging the company.

Vice Chairman and CEO Kim Dong-jin will assume full responsibility and operational control for the automaker, "a duty he shared with Chairman Chung Mong-koo," company spokesman Oles Gadacz said in a statement.

"All local and overseas manufacturing, sales marketing and R&D operations are unaffected by today's development and will continue normal operations," Gadacz said.