Korean state prosecutors are investigating Choi En-young, former chairwoman of Hanjin Shipping Co., and her daughters for possible insider trading,
the
Wall Street Journal
reported.
Choi and her daughters Cho Yoo-kyung and Cho Yoo-hong sold all their stock in Hanjin between April 8 and April 20, as the company faltered. The sales, valued at 3 billion won ($2.7 million), saved her family at least $1 million in losses, the article said. Hanjin went bankrupt on Aug. 31.
Choi currently chairs Eusu Holdings Co., a spinoff of Hanjin Shipping, the article said.
At a hearing before the Korean National Assembly Sept. 9, Choi said she sold the stock to pay off personal debt and thought the company would be bailed out by its creditors, the
Journal
article said.
Choi became Hanjin Shipping's chairwoman after the death of her husband and ran the company for seven years. Her brother-in-law, Cho Yang-ho, is chairman of the parent company, Hanjin Group.
The board of Korean Air Lines Co., which owns a third of Hanjin, agreed to provide 60 billion won ($54 million) to help release cargo on ships stranded because of the company's financial difficulties, the article said.
Critics of Korea's chaebol (family conglomerates) say Choi's case demonstrates how unskilled family members get executive jobs based on family connections, the article said. (Source:
Wall Street Journal
, Sept. 22, 2016.)
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