Hyundai securities firm being probed

With the government announcement that it will investigate alleged illegal foreign exchange dealings at Hyundai Invest Trust & Securities Co., the prosecutor` office also is expected to investigate internal transactions between Hyundai Invest Trust & Securities and Hyundai Capital.

In particular, prosecutors are expected to investigate Hyundai Securities chairman Lee Ik-Chi`s involvement in the case, so the investigation has drawn the attention of many corporate observers.

The Seoul District Public Prosecutors Office said July 31 that it was investigating the case at the request of the Financial Supervisory Commission. Allegations involve Hyundai Invest Trust & Securities president Lee Chang-Shik and Kang Chang-Hee, former president of Hyundai Capital. They allegedly cost their customers hundreds of billions of won by purchasing HITSC`s commodity bonds at high prices by utilizing the customer deposits of Hyundai Capital.