Lee Ik-Chi quits Hyundai securities

In a surprise move, Lee Ik-Chi, chairman of Hyundai Securities Co., handed in his resignation Wednesday afternoon after returning home the previous day from a visit to the United States, where he sealed a deal on foreign investment from AIG. Hyundai Securities will call a meeting of the board of directors on the morning of September 4 to act on his resignation.

Lee reportedly met with Chung Mong-Hun, board chairman of Hyundai Asan, immediately after his arrival in Seoul to discuss his future, and agreed with Chung to wash his hands of the ailing securities firm. He has been widely criticized for mismanagement and incurring the company`s financial difficulties. Sources close to Hyundai speculate that Lee, after leaving Hyundai Securities, might help Chairman Chung concentrate on some of the proposed economic projects in North Korea. Lee holds membership on the board of directors of Hyundai Asan, which is mainly responsible for North Korea investment projects, and he appears certain to retain the directorship even after he withdraws from the securities firm. In the meantime, the outgoing chief executive officer of Hyundai Securities is required to present himself Friday at the appellate court trial involving his alleged role in manipulating the quotations of Hyundai Electronics shares, which was believed to have played a role in destabilizing the local bourse.