Prosecutors have embarked on a search and seizure operation targeting the CEO of Hyundai AutoEver and others.
The Fair Trade Investigation Division of the Seoul Central District Prosecutors’ Office announced that they have been conducting search and seizure operations at a total of four locations, including the residence of the CEO of Hyundai AutoEver and related parties at Spark & Associates, since the morning of Nov. 20.
Previously, on Nov. 17, the prosecutors also conducted search and seizure operations at two residences related to KT and KT Cloud. The prosecutors suspect that KT Cloud incurred losses to the company by purchasing Spark & Associates at a higher price than the market rate last year.
The prosecutors are suspecting that KT Cloud’s purchase of Spark & Associates’ shares at a high price has a nature of “returning a favor.”
The suspicion arises from Hyundai Motor purchasing shares in a company formerly led by ex-KT CEO Koo Hyun-mo’s brother and, in return, allegedly buying shares at a high price in a company founded by Chung Eui-sun, chairman of Hyundai Motor Group, and his brother-in-law Park.
KT Cloud publicly announced on Sept. 16 last year that it had acquired 100% of the shares of Spark & Associates for 20.68 billion won (US$16.01 million) and incorporated it as a subsidiary. Spark & Associates is a Hyundai Motor-related company founded by Park, the brother-in-law of Chung Eui-sun, who is chairman of Hyundai Motor Group.