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Shares in Hyundai and its affiliates dropped on Monday as investor sentiment soured over the latest car recall announcement to hit the South Korean carmakers. 

The falls came as the market reacted to announcements last week that the companies were recalling more than 500,000 cars from the US market, in the latest in a long-running recall scandal over safety issues that has plagued carmakers in recent years.

Shares in Hyundai Motor dropped 4 per cent on Monday while affiliate companies Kia Motors and Hyundai Mobis fell as much as 5.4 per cent and 3.7 per cent, respectively. Markets in Seoul were closed on Friday.

South Korean prosecutors last week raided Hyundai’s headquarters to look into the company’s handling of vehicle recalls. The carmaker is also under investigation by US safety regulators over the issue. 

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