Hyundai Securities head investigated

Financial Supervisory Service officials conducted an on-site investigation of Lee Ik-Chi, chairman of Hyundai Securities, at the company`s headquarters at Yoido in connection with his involvement in foreign capital introduction by Hyundai Electronics Industries Co. LTD.

It is rather exceptional that FSS officials would visit a company for an investigation instead of issuing a citation.

The FSS officials confirmed that Lee had signed a memorandum to offer payment guarantees to Hyundai Heavy Industries Co. LTD for foreign capital introduction by Hyundai Electronics Industries from CIBC of Canada in 1997.

Also, they investigated Lee`s role in the process of HEI`s foreign capital inducement since the company simply reported it instead of obtaining approval from the Minister of Finance and Economy -- violating the Foreign Exchange Management Law.

The FSS indicated that Lee acted in violation of his duty by offering the note for payment guarantee without approval from the board of directors. So far, the FSS has asked him to report for an investigation. As he failed to report, FSS visited him for the investigation.