A Seoul court on Tuesday rejected a prosecution request for an arrest warrant for a former Hanjin Shipping chief accused of illegal stock trading.
Last Sunday, the Seoul Southern District Prosecutors' Office filed for a warrant to arrest Choi Eun-young, who is facing charges of misusing insider information to sell company stocks.
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Choi Eun-young (Yonhap) |
However, the Seoul Southern District Court said Choi is not considered a flight risk, nor is it concerned that Choi would attempt to destroy evidence.
The court noted that evidence gathered so far would be sufficient to incriminate Choi.
Choi and her two daughters allegedly avoided about 1 billion won ($849,000) 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, slowed 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 an earlier questioning by prosecutors, saying she only sold the stocks to pay back her debts. (Yonhap)
