[THE INVESTOR] Prosecutors raided Hyundai Motor on July 5 over an allegation that it engaged in the illicit hiring of retired government officials.
Investigators from the Seoul Central District Prosecutors’ Office were sent to the automaker’s headquarters in Seoul to search the premises and confiscate evidence.
The raid is part of a wide investigation that prosecutors have launched into the country’s antitrust watchdog Fair Trade Commission’s former senior officials who have taken jobs related to their duties at conglomerates following retirement.
Ahead of a general shareholders’ meeting held in March, Hyundai Motors appointed a former chief of the National Tax Service and top official of the FTC as the company’s outside directors. Its affiliate Kia Motor also hired officials who formerly worked with the FTC and the Ministry of Justice for its independent director posts.
The Public Service Ethics Act stipulates that for three years after retirement, senior government officials are banned from taking jobs related to their duties of the past five years.
On June 20, the prosecution raided the offices of the FTC in Sejong, suspecting the agency’s officials of forging collusive ties with conglomerates by taking benefits such as job guarantees.
Since then, the prosecutors have been widening their investigation into companies involved in the case, including Shinsegae Payments, Daelim Industrial and JW Holdings.
By Park Han-na (email@example.com)