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Hyundai Motor vows to avoid politics amid concerns

SEOUL, Sept 19 (Reuters) - Hyundai Motor Co , whose chief executive's brother is running for South Korea's presidency, vowed on Thursday to steer clear of politics in response to concerns expressed by some investors.

Although South Korea's largest automaker split from the Hyundai Group [HYGR.UL] two years ago, investors were worried it might be heading into an area that once tarnished the Group's image, the company said.

A decade ago, the Hyundai Group's late founder, Chung Ju-yung, went to jail for using company coffers to fund an ill-fated run for the presidency.

The motor company's chief executive, Chung Mong-koo, and Chung Mong-joon, who aims to be president of the country, are both sons of the Group's founder.

"There will be no incidents reminiscent of the days under (former) Chairman Chung Ju-yung," Chung Soon-won, Hyundai Motor's head of corporate planning, told a news conference.

"Hyundai Motor will focus on corporate management."

The company's shares rose 0.3 percent on Thursday to 33,300 won, outperforming a main index that rose 0.04 percent.

South Korea is hailed as Asia's most reformed economy since the 1997-98 Asian financial crisis, partly for its efforts to rein in freewheeling, family-run companies like the once almighty Hyundai Group.

"It is common knowledge that businesses offered support to candidates in the past," said Sohn Jung-won, an analyst at Goodmorning Shinhan Securities. "But times have changed."

"Founding family members hold lower stakes in Hyundai companies and foreign investors and (local investors communicating via) the Internet have boosted corporate transparency."

Chung Mong-joon in announcing his bid for the presidency assured voters that he would avoid his late father's mistakes.

He immediately resigned as an adviser to Hyundai Heavy Industries and placed his own $136 million stake in the world's largest shipbuilder in a blind trust.