Hyundai Motor says subsidiaries under tax probe

By Staff
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Google Oneindia News

Seoul, Mar 24: South Korea has launched an investigation into three Hyundai Motor group companies on suspicion of tax evasion, the car maker said on Saturday.

The tax probe, on Hyundai's car shipping affiliate Glovis Co. Ltd. , its car parts maker Hyundai Autonet and Hyundai's construction affiliate Amco, comes after the group chairman Chung Mong-koo was sentenced to a three-year jail term.

''The tax authorities took follow-up action after the court's sentence on the chairman last month, while the investigations are being held on Glovis, Hyundai Autonet and Amco, which were suspected of tax evasion in the slush fund case,'' said Hyundai spokesman Jake Jang by telephone.

On Feb. 5, a South Korean court found the head of Hyundai, the world's No.6 auto maker with its affiliate Kia Motors Corp.

, guilty of breach of trust and embezzling company funds. Chung filed an appeal against the three-year jail term.

National Tax Service officials declined to comment.

On Friday, shares in Glovis fell 2.42 percent at 26,250 won while Hyundai Autonet rose 0.15 percent to 6,840 won.

Hyundai ended down 0.89 percent at 66,700 won, while the broader market <.ks11> ended 0.08 percent lower.

Reuters

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