Choi Eun-young, the former chairwoman of the insolvent Hanjin Shipping Company, is being investigated for illegal insider trading following the company’s financial collapse. Choi sold her stock for $2.7 million in April.
Hanjin Shipping, South Korea’s largest shipping company, left dozens of container ships stranded at sea, unable to dock and unload their cargo, when it filed for bankruptcy last month.
South Korea’s Financial Services Commission (FSC) has explained: “As Ms. Choi and her family are suspected of having sold their Hanjin stocks by using undisclosed information to avoid losses, it’s natural for the authorities to look into whether their selling violated laws.”
The timing of their actions is notable, as Choi and her daughters sold their stock when the company was already coming close to bankruptcy in April. Hanjin applied for a restructuring of its debt only days after Choi’s sale.
Had Choi not sold her stock, she would have lost upwards of $1 million, according to calculations made by South Korean authorities.
Choi Eun-young has rejected the accusations and claims that she sold her stock to pay off personal debts.
(Source: Shipping Watch)