Korea’s shipping company Hyundai Merchant Marine Co demanded former shareholder pay back gains from a sale of 3.3% of shares
Korea’s shipping company Hyundai Merchant Marine Co demanded former shareholder Geveran Trading pay back gains from a sale of 3.3% of shares in accordance with insider trading rules. According to The Korea Herald, 3.4 million shares (3.3%) out of the 14.3 million shares (13.9%) were sold to Hyundai Heavy Industries Group in April, 2006. The shares were bought less than six months ago. The gains reportedly amount to some 10 milliard won. A securities exchange law stipulates that whoever owns 10 percent or more of a listed company must return the gains from a share sale made less than six months after the original purchase. The case is being considered by Seoul District Court.
Hyundai Heavy noted that it has nothing to do with the case. "We just bought the shares because Geveran Trading offered to sell them," said a Hyundai Heavy official. "Returning the gains from the share sale is Geveran's responsibility."