Prosecutors investigating an alleged breach of duty by former KT Corporation chief Ku Hyeon-mo launched a raid of company headquarters and other locations on Monday morning.

The Seoul Central District Prosecutors' Office began the search and seizure at the main KT office as well as the homes of Ku and a former president identified by the surname Yoon.

The state investigation agency is reportedly obtaining evidence regarding an alleged breach of duty during subsidiary KT Cloud's acquisition of a domestic automotive cloud provider in 2022.

KT Cloud allegedly took over the company that was under the leadership of a brother-in-law of Hyundai Motor Group Chairman Chung Eui-sun for 20-point-six billion won, or around 15-point-55 million U.S. dollars, billions of won above the company’s value.

In 2021, Hyundai Motor acquired a vehicular software company run by Ku's older brother at 28-point-one billion won.

Prosecutors suspect that the 2022 acquisition may have been a payment in return for Hyundai's purchase of the financially-strapped company run by Ku's brother the previous year.