Report: South Korean Police Seeking Arrest of Hanjin Group’s CEO
- Business & Finance
South Korean police are seeking an arrest warrant for the Chairman of Hanjin Group, Cho Yang-ho, Reuters reports citing police officials.
Hanjin Group is a holding company comprising the defunct shipping company, Hanjin Shipping, and Korean Air airline.
The arrest is being sought on the grounds of an alleged breach of trust.
Namely, an investigation reportedly found that the funds of Korean Air have been used for private purposes by Cho, including renovation of his home. As informed, Cho denies the claims.
Cho has presided over Hanjin Shipping during its demise, which has had a ripple effect on the container shipping business.
To remind, the former South Korean shipping giant Hanjin Shipping was officially declared bankrupt by the Seoul Central District Court on February 17, less than six months after it first filed for court receivership, ending its 40-year history.
A bankruptcy trustee was appointed to lead the sale of Hanjin’s remaining assets to pay off debts.
Six of Hanjin’s former ships were sent to scrapyards, while the others were taken over by other carriers.
World Maritime News Staff