Hyundai chief faces fraud probe

Prosecutors have arrested the chief executive of carmaker Hyundai Motor’s logistics subsidiary, Glovis, on corruption charges.

Lee Ju-eun is suspected of embezzling 7bn won ($6.73m; £3.85m) in company money for use in lobbying politicians.

Prosecutors say the investigation is linked to the arrest of businessman Kim Jae-rok on illegal lobbying charges.

Hyundai Motor is suspected of paying Mr Kim for his influence with politicians and local government officials.

Prosecutors have also banned a number of top Hyundai Motor officials from leaving the country.

Hyundai Motor shares rose 2.5% on Tuesday after falling 2.6% the day before. Glovis shares fell a further 1.9% on Tuesday after slumping 15% on Monday.

Hyundai was featured in a corruption investigation in 2003, when prosecutors examined allegations of illegal election campaign financing.

Vice-chairman Kim Dong Jin was given a two-year suspended sentence and later pardoned.