Hyundai Securities chairman faces new law suit

The Korean Financial Supervisory Service will sue the chairman of Hyundai Securities.

The Korean Financial Supervisory Service will sue chairman of Hyundai Securities Company Lee Ick-chi for his alleged violations of foreign exchange transaction laws.

The FSS will bring up Lee's case in its regular meeting on Friday prior to taking formal action against him.

Lee is accused of writing a memorandum to Hyundai Heavy Industries vowing to compensate it for any damages the shipbuilding firm might suffer as a result of backing a loan to Hyundai Electronics from a Canadian bank.

The FSS will also forward a recommendation calling for his dismissal.

Lee in April last year was penalized by the FSS for his alleged involvement in stock price manipulation also concerning Hyundai Electronics Industries, and he was sentenced to a two-year prison term with three-year probation. Lee is appealing that case.