SEOUL (Reuters) – South Korean prosecutors are looking into U.S. activist fund Elliott Management to see whether it violated disclosure rules, local media reported on Wednesday.
Yonhap News Agency said the investigation was in relation to its 2015 purchase of shares in Samsung C&T Corp (028260.KS), citing prosecutors.
Elliott declined to comment when contacted by Reuters.
Elliott has challenged the country’s top two family-run conglomerates, most recently Hyundai Motor Group over better corporate governance and returns to shareholders.
In 2015, the activist fund took on Samsung, South Korea’s largest family-run conglomerate. It narrowly failed to block an $8 billion merger between Samsung C&T and Cheil Industries, which it argued was unfair.
Elliott held about 7 percent shares in Samsung C&T at the time.
Yonhap added South Korean prosecutors had notified the fund’s officials of a plan to interview them, but cited a prosecution official as saying it might be difficult to question them as they are outside South Korea.
The Seoul prosecutors’ office did not answer calls from Reuters outside regular business hours.
Elliott has begun a legal dispute with the South Korean government over the 2015 tie-up of two Samsung affiliates, a South Korean government official said on Tuesday.
The U.S. fund said it was seeking to negotiate with South Korea regarding compensation for its damages from the merger.
The deal later became the center of a corruption scandal that led to the arrests of former president Park Geun-hye and the heir to the Samsung empire, Jay Y. Lee last year.
Photo: REUTERS/Kim Hong-Ji/File Photo