Regarding the recent rulings on the CEOs accused of stock trading using undisclosed information, the legal community analyzed that the CEO’s awareness of the negative undisclosed information played a crucial role. While the CEO of SillaJen was acquitted of selling stocks knowing the undisclosed information, the chairman of Hanjin Shipping was sentenced to prison by the Supreme Court for a seemingly similar case. Partner attorney Sangjin Cha commented, “The difference in rulings comes from the CEOs’ awareness of the undisclosed information. For Sillajen, the information regarding the clinical trial failure came from an external institution, the acquisition of which was considered passive by the court. For Hanjin Shipping, on the other hand, it was inevitable for the CEO to be aware through the consulting process with the creditors — the CEO could have handled the matter.” [Aju Business Daily 08.02.22]

URL: Different Court Rulings on SillaJen and Hanjin Shipping