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Arrest warrant against Hanjin Group's CEO withdrawn

AN arrest warrant issued against the CEO of Hanjin Group, Cho Yang-ho, has been withdrawn as the prosecution does not have enough evidence to pursue charges of corruption, according to the newssite Chosun Ilbo.

The report says supplementary investigation will need to be carried out before any charges can be brought against Mr Cho.

Originally, police had filed an arrest warrant over misuse of funds, relating to renovations carried out on Mr Cho's personal property using Hanjin Group company cash, ch-aviation of Switzerland reported.

Mr Cho is the Chair of Hanjin Group, which in turn is the parent company of Korean Air. The total amount of money being investigated is KRW3 billion (US$2.7 million) for construction work carried out in 2013.

"We are conducting an investigation based on allegations that [Cho] used hotel construction funds to pay the construction fees of his private home, which he should have paid," police said at the time.

However, the Special Investigation Division of the National Police Agency has now called for the arrest warrant to be refused, pending further evidence.

Mr Cho presided over Hanjin Shipping during its demise, which has had a ripple effect on the container shipping business. The former South Korean shipping giant Hanjin Shipping was officially declared bankrupt by the Seoul Central District Court on February 17, less than six months after it first filed for court receivership, ending its 40-year history.

A bankruptcy trustee was appointed to lead the sale of Hanjin's remaining assets to pay off debts. Six of shipping line's former ships were sent to scrapyards, while the others were taken over by other carriers.