S. Korea Keeps the Heat on Hyundai : Politics: Four executives face tax evasion charges. The action, critics say, is related to the fact that the firm’s founder will run for president.

SEOUL — Prosecutors intensified pressure on the Hyundai conglomerate’s founder and presidential aspirant Chung Ju-yung last week, arresting executives of a Hyundai subsidiary on charges of tax evasion.

The four Hyundai Merchant Marine Co. executives were arrested on charges of fabricating invoices and other documents to evade $7.6 million in taxes. The four admitted evading taxes to create secret campaign-financing funds, prosecutors said.

The arrests grew out of an investigation that included Chung’s 5th son, Mong-hun, who runs the subsidiary.

Critics say they are a signal that the government intends to harass the elder Chung, who has indicated that he intends to run for president this year. Prosecutors said Friday that charges will be brought soon against Chung Mong-hun. They said he is suspected of evading taxes to raise political funds.

“The probe was seen as the start of the government’s all-out pressure on the Hyundai group,” Hankook Ilbo, a major newspaper, said in a commentary.

Chung Ju-yung announced last year that he was resigning from Hyundai to enter politics. His Unification National Party stormed into prominence last month by winning 31 of 299 seats in the National Assembly and contributing to the ruling party’s upset defeat.

Also on Friday, prosecutors questioned two special advisers to Chung Ju-yung. They said Park Se-yong and Song Yun-Jae were suspected of having conspired to evade taxes while serving as top Hyundai Merchant Marine executives.

Government officials say the elder Chung is collecting political funds from Hyundai Group’s 42 subsidiaries to help him run for president. Chung has denied the accusations.

Tax authorities have accused Mong-hun Chung and other Hyundai executives of evading a total of $36 million in taxes. Earlier this year, the elder Chung, his family and Hyundai subsidiaries paid a record $136 million in back taxes and penalties for alleged illegal stock trading.

Last week, bank regulators accused Hyundai Electronics Co. of diverting $4.3 million in bank loans to Chung’s political activity. On Wednesday, prosecutors said an executive of Hyundai Wood Industries Co. was arrested for illegally dumping polluted materials.

Hyundai officials also assert that the government has pressured banks to cut off credit to the group’s 42 subsidiaries, which produce cars, ships, computers, steel and other industrial goods.