South Korea has launched an investigation into the transfer of engine technology to a Chinese automaker by a local automotive contractor, according to local reports.

The offices of Blue Planet Co, an engine technology consulting understood to have been previously contracted by Hyundai Motor and GM Korea, were raided by South Korean prosecutors last week on suspicion that executives may have transferred engine design technology to a Chinese automaker.

Blue Planet, located near the city of Hwaseong, was set up in 2000 by former staff from Hyundai and other local automotive companies. One of its main areas of focus is low emissions and fuel efficiency.

The investigation is the latest in a series of reported technology leaks from South Korea, from key industries including automotive, electronics and ship building.

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