SEOUL -- South Korean prosecutors raided Hyundai Motor headquarters here Wednesday over allegations that the automaker knowingly concealed vehicle defects before a major recall two years ago.
In May 2017, Hyundai and its affiliate Kia Motors were ordered by South Korea's Ministry of Land, Infrastructure and Transport to recall more than 238,000 vehicles across 12 models over faulty parts.
The same year, the ministry asked prosecutors to investigate whether the automakers intentionally hid defects in engines and air bags to delay the recalls.
Any findings of illegal conduct would be a blow to Hyundai, which is already struggling to boost its earnings. Prosecutors also raided Kia on Wednesday.
The Hyundai Motor group has a roughly 70% market share in South Korea, but the public does not always fully trust the quality of their vehicles. Consumers say it is slower to carry out recalls at home than in overseas markets like the U.S. Hyundai has rejected such criticisms as baseless.