Prosecutors Clear Hyundai Trust Unit

Prosecutors on Tuesday cleared Hyundai Investment Trust Management Co. of an unlawful inter-affiliate transaction charge.

The Financial Supervisory Service charged in 1999 that Hyundai had overpaid an affiliate, Hyundai Investment Trust & Securities Co., when selling debt securities. The regulator said that the deals resulted in an improper gain of 203 billion won ($157 million) for the securities company.

"The prices of debt securities were rising at that time," a Seoul district prosecutor explained, "and there is no conclusive evidence that the prices paid were in excess of market value." He also pointed out that the deals occurred before firms had to regularly revalue securities at market value.