Ex-chairwoman of Hanjin Shipping indicted over illegal stock trading

SEOUL, Dec. 30 (Yonhap) — A former head of Hanjin Shipping Co. was indicted Friday on charges that she illegally sold company stocks using insider information to avoid losses.

The Seoul Southern District Prosecutors’ Office said Choi Eun-young is accused of selling stocks of the financially troubled Hanjin Shipping in April after obtaining information that the company will go through a creditor-led debt restructuring.

The stock sale was completed a few days before Hanjin Shipping, long troubled by an industry slump and ballooning losses, decided to apply for a creditor-led debt revamp and a self-rescue program.

Hanjin, one of the world’s leading container carriers, filed for court receivership in late August amid multi-billion-dollar debts.

Choi currently heads Eusu Holdings Co. which separated from Hanjin Group in May 2015. It has shipping-related units under its wing.

In this file photo taken on Sept. 27, 2016, Choi Eun-young, former chairwoman of Hanjin Shipping, sobs on her knees during a parliamentary audit at the government complex in Sejong, central South Korea. Choi, who served as the shipper’s head from 2008 and 2014, offered an apology over the fall of the country’s No. 1 container shipping line currently under court receivership.

One Comment

1. thomas

   December 30, 2016 at 8:36 AM

   I think its just part of a routine for these people to cry and seek forgiveness for their illegal and mischievous deeds. Its one area where these people actually applied the principles of economics of cost and benefit analysis (CBA). Only, it was contemplated and applied for embezzling money. Too bad these crooks are inept or unable to implement this most basic economic principles of CBA to balance the company budget and grow the business. Shame!

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