The former CEO of Kukil Paper, who avoided losses by selling stocks in advance using undisclosed corporate information, has been indicted while in custody.
On the 20th, the Criminal Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Kim Hyung-won) announced that former Kukil Paper CEO Choi Woo-sik was indicted on charges of violating the Capital Markets Act while in custody.
Choi, the second-generation owner of Kukil Paper, which manufactures specialty paper and industrial paper, is accused of selling approximately 13 million shares of the company's stock worth about 10 billion KRW just before the company entered rehabilitation proceedings in March. The loss he avoided by using undisclosed information is estimated at about 7.4 billion KRW.
On March 13, Kukil Paper held a board meeting and submitted an application for rehabilitation proceedings to the Seoul Bankruptcy Court. The next day, stock trading was suspended. The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency transferred Choi to the prosecution in custody on the 3rd.
The prosecution stated, "We will do our best to maintain the prosecution so that the defendant receives a sentence commensurate with the crime," and added, "We will thoroughly investigate and severely punish offenders who cause damage to minority shareholders by using undisclosed information."
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