Chung Mong-koo, chairman of Hyundai Motors, was accused by a minority shareholder in relation with the controversial purchase of the Korean Electric Power Corporation (KEPCO) headquarters in Gangnam at a high price.
The prosecution office said on Nov. 20 that the case was allocated to the Seoul Central Prosecutors’ Office. The source argued that Jung caused damage to Hyundai Motors by exerting undue influence during the process of purchasing the KEPCO land in Seoul at a price higher than market value.
The Hyundai Motor Group purchased the KEPCO land for 10.55 trillion won (US$9.475 billion), much higher than its appraised market value of only about 3.3 trillion won (US$2.9 billion).
Earlier last month, the Economic Reform Solidarity said, “After reviewing the records of board of directors meetings of Hyundai Motors, Kia Motors, and Hyundai Mobis, it was found that Chairman Jung didn't attend the board meeting for determining whether to participate in the bid of KEPCO land,” but the civil organization delayed legal action.
Meanwhile, all Hyundai Motor Group stocks dropped on the same day. At 10:50 a.m. on Nov. 20, Hyundai Motors was traded at 166,000 won (US$149.07), decreasing by 3.21 percent compared to the revious day. Kia Motors dropped by 2.30 percent and Hyundai Mobis dropped by 2.47 percent.