Financial Watchdog Launches Probe into Hyundai Motor Executives

Financial authorities are set to launch a full-fledged investigation into allegations that Hyundai Motor executives traded stocks using undisclosed information.

Financial authorities will launch a full-fledged investigation into allegations that Hyundai Motor executives traded stocks using undisclosed information related to potential cooperation in Apple’s self-driving car project.

The Korea Exchange had conducted a review of the allegations since February and has delivered the review outcome to the Financial Services Commission (FSC). Based on it, financial authorities will launch an investigation into the case through the commission’s Capital Market Investigation Team or the Financial Supervisory Service.

Earlier on Jan. 8, Hyundai Motor’s stock price soared on news of the talks between Hyundai Motor and Apple on joint development of the Apple Car, breaking a 52-week high. Then on Feb. 8, Hyundai Motor announced that it was not in talks with Apple about the development of autonomous vehicles. The announcement sent the stock price felling.

Some news outlets reported that 12 Hyundai Motor executives sold off their Hyundai Motor shares while the stock price rose steeply, raising a suspicion that they might have used undisclosed information. They sold a total of 3,402 shares for 830 million won.

The investigation is expected to take a long time. Normally, financial authorities’ investigation takes five to six months excluding the pre-launch preparation time.