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(LEAD) Prosecutors seek arrest warrant for ex-chairwoman of Hanjin Shipping

All News 20:45 June 12, 2016

(ATTN: UPDATES with more details, plan for court hearing on arrest warrant in paras 3, 6-8)

SEOUL, June 12 (Yonhap) -- Prosecutors on Sunday filed for an arrest warrant for a former head of Hanjin Shipping Co. accused of illegally selling company stocks by misusing insider information.

Choi Eun-young is specifically charged with violating the Financial Investment Services and Capital Markets Act, according to prosecutors probing the case at the Seoul Southern District Prosecutors' Office.

The 54-year-old and her two daughters allegedly avoided about 1 billion won (US$857,632) in losses by selling their 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.

Currently, Choi is the chairwoman of Eusu Holdings Co. that separated from Hanjin Group in May 2015.

Choi denied the charges during a questioning by prosecutors last week, saying she just sold the stocks to pay back her debts.

But prosecutors say evidence showed that she misused insider information for the stock trading.

The court will decide whether to issue the warrant or not on Tuesday or later.
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