Checkbook Apologies

Facing questions from Korean regulators over your company's business practices? Just open your heart—and your wallet. That seemed to be the message last Wednesday as the Hyundai-Kia Automotive Group, under investigation for allegedly creating a slush fund to influence government officials, apologized to the public for "causing the nation much anxiety" and pledged a whopping $1 billion in donations to unspecified charities. The same day, U.S. private-equity firm Lone Star Funds, facing an inquiry into its purchase of a local bank in 2003 and smarting from allegations that its former top Korea executive had embezzled millions, announced it would donate...