[THE INVESTOR] The prosecutors summoned a former head of Hanjin Shipping for the second time on June 29 over insider trading allegations, according to legal sources.

The Seoul Southern District Prosecutors’ Office summoned Choi Eun-young as a suspect on charges of violating the Financial Investment Services and Capital Markets Act.

The 54-year-old and her two daughters are suspected of selling stocks of the financially troubled Hanjin Shipping in April, after obtaining information that the company would go through a creditor-led debt restructuring.

The controversial stock sale was completed a few days before the shipping firm decided to apply for a creditor-led debt revamp and a self-rescue program.

The second summons came about two weeks after a local court rejected issuing a warrant to formally arrest Choi. The first summons were carried out on June 14.

Prosecutors said they are planning to request that the court issue the writ again by backing up the possibility of Choi destroying evidence.

Choi currently heads Eusu Holdings which separated from Hanjin Group in May 2015.

(theinvestor@heraldcorp.com)