The office and home of Choi Eun-yeong, former chairman of Hanjin Shipping, were raided this morning as prosecutors pursue insider trading investigations.
Choi and her two daughters have been accused of selling their stocks in Hanjin just days ahead of the Korean line’s application for creditor-led restructuring.
Choi has already been questioned about the share sale at the end of last month as have some officials at the line who are suspected of leaking the news.
According to a regulatory filing, Choi and her two daughters sold all of their 0.39% stake, or 669,248 shares, in Hanjin Shipping in a two-week period leading up to April 20, just two days before the line announced it was entering restructuring. The sale saved the Choi family some KRW1bn ($877,000), according to local media.
This kind of insider trading in South Korea comes with a prison sentence of up to 10 years or a fine that amounts to three times the amount of gains or losses avoided.
