Korean Tax Authorities Investigating HHI

Tax authorities in South Korea are investigating Hyundai Heavy Industries (HHI) regarding what local media describe as possible irregularities in its overseas trading.

A spokesperson from HHI has dismissed speculation saying it is a routine audit carried out every five years.

However, the Korea Herald reports an official from the National Tax Service saying that they have found many possible problems in HHI’s overseas fund transactions during a preliminary investigation. 

HHI, the country’s largest shipbuilder, recorded a loss of $2 billion in 2014, largely as a result of competition from Chinese shipbuilders and reduced demand from European owners.

The company has 26 affiliates in shipbuilding, heavy machinery and plant and energy businesses. The shipbuilder recently announced a plan to merge three of its business units in a bid to improve efficiency and reduce costs.

The probe is likely to extend to its affiliates, says the Korea Joongang Daily.