HYUNDAI MOTOR INVESTIGATION

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Korean prosecutors are stepping up investigations into the allegation, that Hyundai Motor concealed engine defects in its vehicles. The probe is currently focusing on the automaker's executives who are suspected of their involvement in the concealment, and their decision to recall vehicles

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Prosecutors investigating the allegation that Hyundai Motor concealed engine defects have subpoenaed one of the automaker's former executives. The Seoul Central District Prosecutors' Office has summoned Shin Jong-un, a former vice chairman in charge of quality assurance at Hyundai-Kia, to interrogate him about his involvement in the decision to recall vehicles. Shin served as vice president, president and vice chairman at Hyundai Motor during his 37-year career. He stepped down in late 2015 after a massive recall of vehicles equipped with the Theta II engines. Hyundai Motor recalled some 470,000 vehicles in the U.S. in September 2015 after a speculation was raised that its cars equipped with the Theta II engine were prone to accidents. Reportedly, major problems ranging from engines stopping while in operation or fires breaking out became a point of concern. As the speculation of defect concealment spread further, the automaker recalled 1.19 million more cars in the U.S. in March 2017. However, Hyundai Motor denied problems in domestic vehicles that had the same engine and failed to take measures. As more and more domestic consumers complained about engine problems, Hyundai belatedly recalled 170,000 Grandeur HG and YF Sonata cars in April 2017. The domestic recall taking place only after the second recall in the United States. The prosecutors believe that the automaker continued to hide engine defects until the investigation began, and they believe that the automaker failed to take any appropriate measures. The Motor Vehicle Management Act stipulates that car manufacturers must announce defects in their products without delays and take corrective measures as soon as possible. Those who fail to comply may be subject to less than ten years in jail or a fine of under 1 million Korean won.