Prosecutors raided the head office and factory of a supplier for POSCO, the world's third-largest steelmaker, authorities said Tuesday.
  

Authorities confiscated financial statements, transaction records and computer hard disks at the Seoul headquarters of Kosteel Co., which provides wire rods to POSCO in Pohang, about 370 kilometers southeast of Seoul.
  

The move came as prosecutors were looking into allegations that POSCO Engineering & Construction Co., the construction arm of POSCO, created a slush fund overseas.
  

The construction unit came under a prosecution investigation last month after an internal audit within the company found the existence of a slush fund in Vietnam earlier this year.
  

POSCO E&C's former vice president is accused of stashing away about 10 billion won ($9.2 million) in a secret reserve between 2009 and 2012. (Yonhap)