South Korean police have launched a compulsory investigation into Hanjin KAL, the holding company of Hanjin Group, over the company’s free contribution of approximately 440,000 treasury shares to an employee welfare fund. The shares represented 0.66% of Hanjin KAL and were valued at about 66.3 billion won ($49.4 million). The Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit recently raided the company’s headquarters and other locations over alleged breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes and possible Capital Markets Act violations. The probe follows a complaint filed last May by the Seomin Committee against Hanjin Group Chairman Cho Won-tae and Hanjin KAL CEO Ryu Kyung-pyo. Police are examining whether the transfer revived voting rights and effectively created a friendly stake for Cho’s camp after Hoban Group raised its holding from 17.44% to 18.46%.