Prosecutors have raided five more companies related to the probe into Hyundai Group slush funds, according to the Korea Herald.
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The investigation is now focuses on untangling a complex web of share transactions through which the management control was transferred from chairman Chung Mong-koo to his only son. This is in addition to an on-going investigation into alleged bribes given to government officials and politicians.
The latest raids came a day after the prosecution said it had found new clues while examining seized Hyundai documents, that chairman Chung made illegal share transfers to his son. Chung’s son, Chung Eui-sun, is head of Kia group and president of Kia Motors, as well as Hyundai Mobis and Glovis.
According to the newspaper there is a question mark hanging over what stage the handover of power has reached. The high degree of cross-ownership of the companies in the group means that a major stake in any one of the companies effectively gives control of the group, reported the Korea Herald.
As of December 31, 2005, Hyundai Mobis holds a 14.56% stake in Hyundai Motor, which controls 38.67% of Kia Motors. Kia in turn owns 18.15% of Hyundai Mobis.
The prosecution is also reportedly looking into whether Hyundai Motor acquired Hyundai Autonet at a knock-down price. The consortium of Hyundai Motor and Siemens bought the car electronics maker for 3,050 won per share in July, less than Hyundai Autonet’s market price of 3,425 won per share.
