S. Korea Opens Probe of Hyundai

Shares of Hyundai Motor Co. and two of its affiliates fell after state prosecutors launched an investigation into allegations that the companies used illegal funds to lobby the government.

Prosecutors on Saturday raided the offices of Hyundai Motor, South Korea’s largest automaker, and its Kia Motors Corp. and Glovis Co. units, Hyundai Motor spokesman Lee Ki-hoon said Sunday. He declined to elaborate.

Hyundai Motor shares fell 2.7%, while Kia shares fell 3.2%. Glovis, a logistics company that stores automobiles, shed 9%.

Prosecutors raided the offices on suspicion that funds used for illegal lobbying by Hyundai Motor were funneled through Glovis, said Chae Dong-wook, the prosecutor in charge of the investigation at the Supreme Public Prosecutors Office.