Prosecutors Raid POSCO Over Allegations of Insider Information Used for Share Buyback
[Asia Economy Reporter Kang Nahum] The prosecution, investigating allegations that POSCO Chairman Choi Jung-woo and executives purchased company shares using undisclosed information, conducted a search and seizure at POSCO.
On the afternoon of the 12th, the Economic Crime Criminal Division of the Seoul Central District Prosecutors' Office sent prosecutors and investigators to the POSCO Center in Gangnam-gu, Seoul, to carry out the search and seizure.
The prosecution is reported to have secured internal meeting documents and files from POSCO.
Earlier, in March, organizations such as the People's Solidarity for Participatory Democracy and the Lawyers for a Democratic Society filed a complaint with the Seoul Central District Prosecutors' Office against Chairman Choi and 64 POSCO executives for violating the Capital Markets Act.
These groups claimed that from about a month before the POSCO board announced a plan to repurchase company shares worth 1 trillion won in April last year, Chairman Choi and others acquired 19,209 POSCO shares (worth 3.26 billion won) using undisclosed information.
They added, "On the day the share repurchase plan was announced, POSCO's stock price rose by 13,500 won, and this trend continued until April 14, 2020," and stated, "Since 64 executives purchased company shares in an organized manner during a specific period, and the purchase quantities were similarly around 100 to 300 shares, it is reasonable to conclude that they received the same information in advance."
Hot Picks Today
"Could I Also Receive 370 Billion Won?"... No Limit on 'Stock Manipulation Whistleblower Rewards' Starting the 26th
- Samsung Electronics Labor-Management Reach Agreement, General Strike Postponed... "Deficit-Business Unit Allocation Deferred for One Year"
- "Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "From a 70 Million Won Loss to a 350 Million Won Profit with Samsung and SK hynix"... 'Stock Jackpot' Grandfather Gains Attention
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
In response, POSCO stated, "At the time, amid the overall stock price decline due to the COVID-19 crisis, executives purchased company shares to express their commitment to responsible management," and added, "No profits have been realized to date." They also said, "We understand today's search and seizure as a routine investigative procedure and will actively cooperate."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
