Hyundai E&C slides on accounting fraud allegations

24 July 2015

Maeil Business Newspaper

Shares in Hyundai Engineering & Construction declined Friday morning after news reports that its major affiliate Hyundai Engineering is involved in an alleged accounting fraud worth hundreds of billions of won. At 9:48 a.m., Hyundai E&C sank 7.13 percent to trade at 35,150 won. Hyundai E&C, the country’s top builder, owns a 38.62 percent in of Hyundai Engineering. Media reports said Hyundai Engineering inflated profits by reducing its cost-income ratio, a whistleblower was quoted as saying. Hyundai Engineering argued there was no foul play and the individual told a lie due to conflicts with the company.