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Hyundai heavy industries files lawsuit

Posted July. 27, 2000 19:45,   


Escalating internal strife has wracked the Hyundai Group, with the 240 billion won payment dispute between Hyundai Heavy Industries (HHI) and Hyundai Electronics (HEC) now in the hands of the courts.

HHI has decided to file a lawsuit against HEC and Hyundai Securities in order to receive compensation for damages and has appointed an attorney to the case.

The lawsuit is expected to be taken to the Seoul regional court after the elevant documents are examined.

HHI has questioned the accountability of chairman Lee Ik-Chae, who is Jung Mong Hun`s confidant, and is considering taking action against him. The affair could in fact develop into a heated confrontation between the Jung brothers. Within the group, there are calls for the resignation of immediate Jung family members, and this has become the source of a dispute between the siblings.

The damages indemnification note provided to HHI in 1997 by Hyundai Securities chairman Lee Ik-Chae and former HEC president Kim Young-hwan was also revealed.