Prosecutors Drop Charges Against Former POSCO Chairman Choi Jeong-woo Over 'Undisclosed Information Share Purchase' Allegations
Investigation Concludes Five Years After Civic Groups' Complaint
"Insufficient Evidence"
Former POSCO Chairman Choi Jeong-woo and executives and employees who were accused of making unfair gains by using undisclosed information related to the company's share buyback have been cleared of charges by prosecutors. The prosecution determined that there was insufficient evidence to prove the use of undisclosed material information.
Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jin-Hyung Kang
View original imageOn March 25, the Seoul Central District Prosecutors' Office announced that it had decided not to indict former Chairman Choi and other current and former POSCO executives and employees who had been under investigation for alleged violations of the Capital Markets Act, citing insufficient evidence.
The case began in March 2021, when civic groups such as the Korean Metal Workers' Union and People’s Solidarity for Participatory Democracy filed a complaint with the prosecution against former Chairman Choi and 64 other POSCO executives.
The complainants claimed that Choi Jeong-woo and 63 other POSCO executives and employees purchased POSCO shares in March 2020 by using undisclosed material information about the company's planned share buyback. After receiving the complaint, prosecutors initiated a compulsory investigation, including a search and seizure of the POSCO Center.
However, prosecutors concluded that there was no objective evidence to acknowledge that they had purchased shares using undisclosed information.
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The prosecution explained, "At the time of the share purchases in March 2020, the impact of the COVID-19 outbreak had led to a decline in stock prices. It was confirmed that POSCO executives and employees voluntarily bought company shares to enhance market confidence and to demonstrate their commitment to 'responsible management.'"
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