Prosecutors raid Hyundai AutoEver CEO's home in embezzlement investigation

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Prosecutors raid Hyundai AutoEver CEO's home in embezzlement investigation

Published: 20 Nov. 2023, 14:20

KIM JU-YEON
kim.juyeon2@joongang.co.kr

Prosecutors raided four residences, including Hyundai AutoEver CEO Seo Jeong-sik's home, on Monday, as part of an ongoing investigation into an embezzlement case involving higher-ups in KT subsidiary KT Cloud and Hyundai Motor affiliates.[NEWS1]

Prosecutors raided the residences of Hyundai AutoEver CEO Seo Jeong-sik and three others in an ongoing investigation into an embezzlement case, where KT subsidiary KT Cloud is accused of purchasing stocks from a Hyundai Motor affiliate at higher prices than normal.

A total of four residences, including Seo’s and that of a worker at KT subsidiary OpenCloud Lab, formerly Spark & Associates, were raided on Monday, said the Seoul Central District Prosecutor’s Office.

Two of the concerned KT and KT Cloud insiders’ residences were raided earlier on Friday.

KT Cloud, a cloud service company, is accused of purchasing shares at inflated prices from OpenCloud Lab, then Spark & Associates, which was founded by Hyundai Motor Chairman Euisun Chung’s sister-in-law, Park.

Hyundai Motor had previously twice purchased shares from the money-losing startup AirPlug, founded by former KT CEO Ku Hyeon-mo’s twin brother, in 2019 and 2021. Prosecutors allege that KT purchased shares from Spark & Associates in order to return the favor.

Hyundai AutoEver CEO Seo has roots in KT, having previously worked in the telecommunications company’s cloud network business.

Hyundai AutoEver shares dropped by more than two percent in the first hour as markets opened in Seoul.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]