S. Korea Probes Hyundai Founder’s Stock Deals

Chung Ju-yung, founder and owner of South Korea’s leading Hyundai business group, and several family members have been investigated for alleged illegal stock trading, a Parliament official said Thursday.

The Office of National Tax Administration uncovered illegal trading of shares in the group’s subsidiaries by the Chung family, the official quoted Seo Yeong-taek, head of the office, as telling a National Assembly committee Wednesday.

The official quoted Seo as saying the office was still investigating the illegal stock trading, carried out mainly outside the stock market as a way to inherit property among the Chungs.

He said Seo told the committee that his office would levy heavy taxes if the investigation proved that Chung, now Hyundai’s honorary chairman, and members of his family were involved in the illegal trading.

The official said Kim Deog-ryong, a ruling Democratic Liberal Party lawmaker and member of the committee, alleged that Chung and his family members had traded a total of 3.9 million shares, including 1.1 million shares valued at about $27 million (20 billion won ), in the past 20 months.