South Korean police are seeking an arrest warrant for the chairman of Hanjin Group, Cho Yang-ho, on charges of breach of trust, Reuters reported citing police officials.
Hanjin Group is the parent company of Hanjin Shipping and Korean Air airline, South Korea’s top airline.
Mr. Cho is under investigation over suspicion that he used company funds for personal purposes, including renovation of his home between the period of May 2013 and August 2014.
As part of the investigation, South Korean police raided the headquarters of Korean Air Lines in July.
When questioned by police last month, Mr Cho denied accusations, sources say.
National shipping giant Hanjin Shipping was declared bankrupted earlier in 2017, after 40 years of operations.
On Tuesday, the Seoul Central District Prosecutors’ Office rejected the police’s request for a warrant to arrest Hanjin Group Chairman, instructing the police to further investigate the case.