[Alpha Biz=(Chicago) Reporter Kim Jisun] The former CEO of KUK-IL PAPER was arrested by the police on charges of selling the company's shares in large quantities using undisclosed information ahead of the corporate rehabilitation application.

According to the police on the 2nd, the Seoul Metropolitan Police Agency's financial crime investigation team arrested Choi, the former CEO of KUK-IL PAPER, on charges of violating his obligation to report undisclosed information and mass holdings under the Capital Markets Act on the 31st of last month.

Choi, the second-generation KUK-IL PAPER owner, is suspected of selling treasury stocks worth about 10 billion won (about 13 million shares) in March using undisclosed information. In addition, under the Capital Markets Act, holding more than 5％ of shares in stock-listed companies are required to report the situation and purpose of their holdings and the contents of major contracts to the Financial Services Commission and the exchange, but Choi is also suspected of failing to comply with it.

Judging that Choi avoided losses by using undisclosed information, the police raided the office of Kukilji and Choi's residence on the 10th of last month.

Meanwhile, KUK-IL PAPER, which makes special land and industrial sites, applied for the start of the rehabilitation process on March 13 and has suspended stock trading on the KOSDAQ market since March 14, the following day.

 

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