Type to search

Hyundai execs face insider trading probe after Apple talks

Hyundai Capital America submitted inaccurate payment information to credit reporting agencies for years, damaging consumers' credit ratings.
Hyundai lgog. Photo: Reuters.

Hyundai Motor Co executives are the target of a probe over claims they might have traded stocks using undisclosed information from the firm’s autonomous vehicle talks with Apple.

South Korea’s financial regulator is investigating stock trades made by Hyundai chiefs, a national newspaper reported on Monday. following a review begun in February.

The findings of that review have now been passed on to the country’s Financial Services Commission (FSC).

Read more: Ant Group ordered to restructure as a financial institution

Citing an unnamed financial regulatory source, the newspaper said either the FSC or the Financial Supervisory Service (FSS) will lead the investigation into alleged insider trading, which could take as long as six months. 

Shares of Hyundai jumped 21% between its initial confirmation in early January that it was having talks with Apple, and an announcement on February 8 that the talks were off.

After the initial domestic media report on the possible tie-up with Apple on January 8, a dozen Hyundai executives traded about 3,400 shares, worth about 833 million won ($753,000), according to Reuters calculations based on the company’s regulatory filings.

Hyundai Motor shares were down 1.1% on Monday, while the broader market KOSPI was trading flat.

  • Reporting by Reuters

Also on ATF:

Biden vows action on semiconductor shortage, citing China threat

After Alibaba’s $2.8bn antitrust fine, who will be the next target?


Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


AF China Bond