NTS Conducts Probe into Hyundai Companies

The National Tax Service (NTS) started a tax audit on three subsidiaries of Hyundai-Kia Motors, Glovis, Amco, and Hyundai Autonet, on Friday.

A department in the Seoul Regional Tax Office that conducts special tax audits, not regular tax investigations, is carrying out the investigations.

Glovis is in charge of logistics for the Hyundai Auto Group, Amco is a construction company, and Hyundai Autonet produces electronic devices such as car radios.

Kia Motors president Chung Eui-sun, the son of chairman Chung Mong-koo, is the largest shareholder of Glovis and Amco. Glovis and Hyundai-Kia Motors own shares of Hyundai Autonet.

It was disclosed in last year’s investigation by prosecutors that Hyundai Auto Group keeps slush money in Glovis. Amco is suspected of monopolizing all construction projects within the group.

The NTS is expected to pursue various allegations of tax dodging as chairman Chung was convicted of embezzlement last month.

Also, as Kia president Chung was suspected of interfering in previous investigations, the NTS will look into whether there has been any tax evasion in the past.

koh@donga.com bae2150@donga.com