Ex-chairwoman of Hanjin Shipping summoned again over illegal stock trading

SEOUL, June 29 (Yonhap) — A former head of Hanjin Shipping Co. was summoned by prosecutors for the second time Thursday over suspicions she illegally sold company stocks after obtaining insider information to avoid losses, legal sources said.

The Seoul Southern District Prosecutors’ Office summoned Choi Eun-young as a suspect on charges of violating the Financial Investment Services and Capital Markets Act.

The 54-year-old and her two daughters are suspected 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 controversial 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.

The second summons came about two weeks after a local court rejected issuing a warrant to formally arrest Choi. The first summons was carried out on June 14.

Prosecutors said they are planning to request that the court issue the writ again by backing up the possibility of Choi destroying evidence.

Choi currently heads Eusu Holdings Co. which separated from Hanjin Group in May 2015.

Choi Eun-young, a former head of Hanjin Shipping Co., leaves the Seoul Southern District Prosecutors’ Office on June 14, 2016, after being questioned on allegations she illegally sold company stocks after obtaining insider information to avoid losses. Prosecutors summoned Choi for the second time on June 29. (Yonhap)