{
  "id": 16570845,
  "title": "Civic Group Files Breach of Trust Complaint Over Hanjin-Linked Share Deals",
  "url": "https://urgent.news/2026/10/26/civic-group-files-breach-of-trust-complaint-over-hanjin-linked-share",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-26T07:32:52.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=279646"
  },
  "original_language": "en",
  "account": "The civic group Fair Shareholder Forum has filed a breach of trust complaint with the Seoul Metropolitan Police Agency, alleging misconduct in share deals linked to Hanjin Group Chairman Cho Won-tae's inheritance tax issues. The complaint centers around transactions involving Jungseok Enterprise, an unlisted affiliate of Hanjin Group, made in 2021 to raise funds for Cho's family's inheritance tax bill. The group contends that Korea Zinc, a major shareholder, used its funds to acquire a 12.22% stake in Jungseok Enterprise, with 99.2% of the 50.3 billion won funding reportedly sourced from Korea Zinc. The sequence of transactions, including a sale to an investment vehicle managed by Won Asia Partners and later purchases by Korea Zinc and Hanjin KAL, has raised concerns about the adequacy of shareholder interests. The complainants argue that the transactions provided an estimated 2% annualized return to Korea Zinc, below prevailing rates, and potentially left the group's shareholders under-served. The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit is also probing a separate case involving treasury shares and potential breaches of fiduciary duty, which could influence the investigation's outcome.",
  "summary": "Suspicions that Korea Zinc funds were used in transactions linked to Hanjin Group Chairman Cho Won-tae’s inheritance tax obligations have led to a police complaint. With a separate police investigation underway into Hanjin KAL’s use of treasury shares, the latest complaint has raised further questio",
  "key_points": [
    "Fair Shareholder Forum files breach of trust complaint.",
    "Korea Zinc acquired 12.22% stake in Jungseok Enterprise.",
    "Transactions allegedly used Korea Zinc funds, underserving shareholders."
  ],
  "editors_take": "This legal challenge signals increasing scrutiny of how conglomerate leaders utilize affiliate transactions to settle personal tax obligations at the potential expense of broader shareholder interests.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}