ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

South Korean prosecutors raid Hyundai for allegedly hiding defects

Automaker suspected of trying to delay 2017 recall

Kia and Hyundai headquarters in Seoul. The automakers are suspected of hiding defects in their vehicles in an attempt to delay recalls. (Photo courtesy of Hyundai Motor)

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media