Eun Sung-soo: "Hyundai Motor's 'Apple Car Unfair Trade' Hearing Next Week... Appropriate Measures Will Be Taken"

Democratic Party Rep. Park Yong-jin to Question on the 17th at the Political Affairs Committee... "Ordinary Small Investors Are Quite Angry"
13 Hyundai Motor Executives Sold Stocks Worth 800 Million Won Just Before 'Apple Disclosure'
Eun Seong-su Also Says "Investigation to Be Completed by the 26th" Regarding Samsung Securities' 10 Billion Won Illegal Loan Suspicion

[Image source=Yonhap News]

[Asia Economy Reporters Wondara and Seungseop Song] Eun Seong-su, Chairman of the Financial Services Commission, stated that appropriate measures will be taken regarding the allegations of stock sales by Hyundai Motor Company executives related to the 'Apple Car.' The Korea Exchange's review will begin next week.

On the afternoon of the 17th, during a business report session of the Political Affairs Committee held at the National Assembly, Chairman Eun responded to a question from Park Yong-jin, a member of the Democratic Party of Korea, who asked, "Is it appropriate for the Korea Exchange to conduct only monitoring-level internal investigations regarding the allegations that Hyundai Motor executives sold stocks using undisclosed information (before the crash)?" Eun replied, "I understand that the review will proceed next week."

Park urged that the Financial Supervisory Service (FSS) should conduct a direct investigation, to which Chairman Eun responded, "The Exchange will review the matter, and if there is an issue, the financial authorities will take action," adding, "I will discuss with the executives and ensure appropriate measures are taken."

When asked if "appropriate measures" meant that the FSS would verify and act on any abnormal trading, Eun answered, "Yes." Park further questioned, "The Exchange's stance is that selling during a surge does not itself constitute undisclosed information and that there is almost no problem," to which Yoon Seok-heon, Governor of the FSS, replied, "I expect the Financial Services Commission to issue investigation guidelines."

Park emphasized, "There is considerable anger among ordinary retail investors. The Exchange claims there is no problem, and Hyundai Motor is making the same assertion, but ordinary investors cannot help but feel outraged. Although it is said that the amounts are small, there were cases where 150 million won was sold. Surely profits were made," urging a thorough investigation once again.

Thirteen Hyundai Motor executives, including executive directors and managing directors, sold a total of 3,537 shares of their own company stock (including preferred shares) between the 6th and 27th of last month. The sales amounted to approximately 800 million won. About ten days later, on the 8th of this month, Hyundai Motor announced that it was not in discussions with Apple regarding autonomous vehicle development, and the market capitalization of five Hyundai Motor Group companies evaporated by 13.5 trillion won in a single day.

Meanwhile, Chairman Eun stated that the investigation into allegations of illegal loans by Samsung Securities executives will be completed by the 26th. Park pointed out, "At last year's October National Assembly audit, the issue of illegal loans amounting to 10 billion won by Samsung Securities' affiliates was raised, but the investigation is still ongoing," adding, "There are even intelligent delay tactics such as the involved parties changing jobs or being unreachable due to working from home during COVID-19." Chairman Eun acknowledged this as an "appropriate criticism" and said, "We plan to complete the investigation by the 26th and will make every effort to finish it promptly by then."

This content was produced with the assistance of AI translation services.