Hyundai founder`s grandson questioned in stock manipulation probe

SEOUL, Sept. 23 (Yonhap) -- A grandson of the late Hyundai Group founder was
recently summoned for questioning, the prosecution said Tuesday, as investigators
widened their probe into alleged stock manipulation by second-generation
entrepreneurs, including a son-in-law of President Lee Myung-bak.
Jeong Il-sun, chief of BNG Steel Co. and a grandson of Hyundai founder Chung
Ju-yung, is one of the young entrepreneurs under investigation for allegedly
using their high-profile status to influence the market.
Investigators at the Seoul Central District Prosecutors' Office are "looking into
whether Jeong collaborated in the stock manipulation case involving I.S High
Tech, Inc.," a listed LCD module producer, said a prosecutor on condition of
anonymity.
Jeong, along with his two brothers, invested 500 million won (US$4,360) in the
venture firm I.S High Tech when it announced a capital increase worth 30 billion
won last year. News of their investments dramatically drove up share prices to
3,700 won from about 2,000 won, prosecutors said. Jeong's BNG Steel is a leading
stainless products manufacturer affiliated to Hyundai Kia Automotive Group.
Prosecutors are investigating whether Jeong's name was attached to the investment
in order to artificially boost share prices, similar to another stock
manipulation case involving his partner and owner of I.S High Tech.
I.S High Tech's owner, identified by his surname Cho, faces trial for rigging
shares in another listed firm, New Wall Corp. He collaborated with Park
Joong-won, the second son of former Doosan Group chairman Park Yong-oh, to
artificially boost the firm's share prices by spreading rumors of Park's
investment, prosecutors allege.
Young entrepreneurs related to tycoons have long been rumored to use their status
to reap huge earnings in the market. The widening probe recently spread to
President Lee's son-in-law, Cho Hyun-bum, who is vice president of Korea's
largest tiremaker, Hankook Tire Co., and is married to the president's third
daughter. Cho is known to hold a 5.7 percent stake in the mobile software
developer Codinus, which is also implicated in a suspected stock manipulation
case.
Koo Bon-ho, a cousin of LG Group Chairman Koo Bon-moo, is also charged with
pocketing billions of won in another share rigging case.