However, Lim Yang-woon, a senior prosecutor in charge of the investigation at the Seoul District Prosecutors' Office, told reporters authorities had found no evidence of involvement by Hyundai Group Co-Chairman Chung Mong-hun and other family owners.

Lim said Hyundai Securities Chairman Lee Ik-chi, arrested last week, masterminded the manipulation of the share price of Hyundai Electronics Industries Co to boost the brokerage's profits and its capital adequacy ratio.

Lim said Lee mobilised a combined 213.4 billion won ($177million) from Hyundai Heavy Industries and Hyundai Merchant Marine to prop up Hyundai Electronics shares between May and November 1998.

Lee became a financial celebrity by introducing the popular Buy Korea investment fund, which accumulated more than 11 trillion won following its launch lastMarch.

The fund also helped drive up local stock prices this year from post-crisis blues and became a trend-setter among other brokerage houses.

Hyundai Group and Hyundai Securities have denied the manipulation allegations, saying the purchases of Hyundai Electronics shares were made purely for investment.

Separately, the prosecutor said four executives fromHyundai Heavy Industries, Hyundai Merchant, Hyundai Securities and Hyundai Electronics were also indicted on charges of rigging the stock prices of their own companies.