Tax authorities in Korea are investigating Hyundai Heavy Industries amid speculation that the nation’s largest shipbuilder might have been involved in illegal overseas fund transactions.

The NTS and the company confirmed Thursday that auditors from the Seoul and Busan regional tax offices have started investigating records at the company’s headquarters in Ulsan.

“We are fully cooperating with the agency for the routine investigation,” the company said. But it dismissed the speculation, saying it is a regular tax audit the NTS has carried out on the shipbuilder every five years. The shipbuilder last went through the probe in 2010.

The NTS, however, is also looking at possible irregularities in its overseas and intra-group trading.

“We have found many problems in Hyundai Heavy Industries’ overseas fund transactions during a preliminary investigation,” an NTS official said.

According to sources, the NTS launched the investigation after detecting irregularities with Hyundai Heavy Industries and its affiliates.

Hyundai Heavy Industries has 26 affiliates in shipbuilding, heavy machinery, and plant and energy businesses.

By Park Han-na (hnpark@heraldcorp.com)