Suspected of Using Undisclosed Information
Financial authorities have expressed their intention to look into the allegation that Hyundai Motor Group executives took unfair profits using undisclosed information with regard to Apple's development of self-driving electric vehicles.
"If there is a problem, we will take proper action,” said Eun Sung-soo, chairman of the Financial Services Commission (FSC), as Park Yong-jin, a lawmaker of the ruling Democratic Party called for investigation into the allegation. “Korea Exchange will begin to examine the matter next week.”
Rep. Park pointed out 12 key executives of Hyundai Motor Group sold at least 3,402 Hyundai Motor Co. shares worth 830 million from Jan. 11 to 27. He suspected that they sold the stocks by using undisclosed information.
Hyundai Motor's stock price began to soar on Jan. 8 when a rumor surfaced that the carmaker discussed a cooperation proposal from Apple regarding development of electric vehicles. But its stock price plunged after the automaker suddenly announced on Feb. 8 that it was not in talks with Apple. The combined market capitalization of Hyundai Motor Group's five companies fell 13.5 trillion won in just one day.
Rep. Park urged the FSC and the Financial Supervisory Service (FSS) to actively investigate the matter, saying that Article 174 of the Financial Investment Services and Capital Markets Act prohibits the use of undisclosed information.
"I will discuss this matter with FSC officials and take reasonable measures," FSC chairman Eun said in response. "If we receive data from Korea Exchange, we will examine them," answered Yoon Seok-hun, head of the FSS.