A KOREAN-owned firm under investigation over claims it is employing illegal immigrants could be forced to pay back £150,000 to the Government.

Woo One, a Hartlepool company that makes computer casings, received the Regional Selective Assistant (RSA) grant four years ago to diversify the business into microwave parts manufacturing.

Officials said last night if the allegations were true, the money could be clawed back by the Government.

The company supplies Samsung with computer casings.

A spokesman for One NorthEast, responsible for administering RSA grants, said the company had originally been offered £250,000 in grants.

He said: "One NorthEast has paid the company £150,000 after they met conditions to create 75 jobs but the remaining grant has been withheld because the company said it could not maintain further grant conditions.

"Ultimately, there is provision within every RSA grant that we give out, to claim the money back if they break the conditions they agree to."

Woo One faces an inquiry over allegations that it was using illegal immigrants from Northern China.

The workers, who speak little English, were alleged to have been sent to the firm with false identities and work permits by a London employment agency.

A spokesman for the company declined to comment yesterday.