Taiwan Raids Evergreen Marine Offices in Insider Trading Probe

Taiwanese investigators have raided Evergreen Marine offices and other locations as part of an insider trading investigation into trades linked to the sale of EVA Airways. The Ministry of Justice Investigation Bureau searched 10 locations and summoned nine people, including Evergreen Group president Chang Kuo-hua, who was questioned and released on 3.75 million dollar bail. Evergreen Marine says it is fully cooperating with authorities and that its operations and financial position remain unaffected by the investigation.

 

Scope of the Investigation

 

Taiwanese authorities have conducted a wide-ranging search and questioning operation. The Ministry of Justice Investigation Bureau searched 10 locations, including Evergreen Marine offices. It also summoned nine people for questioning in connection with the investigation. The action was instructed by the Taipei District Prosecutors Office. Search warrants approved by the Taipei District Court authorised the searches and questioning of suspects.

The raids extended across corporate and private premises on 6 July. Prosecutors and police raided the homes of several individuals linked to the case. These included Chang Kuo-hua, his brother Chang Kuo-cheng and Evergreen Marine board director Ko Li-ching. The offices of Evergreen Marine and Evergreen International Corp were also among the locations searched. This spread of targets reflects the breadth of the ongoing inquiry.

 

Origins of the Case

 

The investigation traces back to a shareholder complaint filed two years earlier. Shareholder Lin Wen-peng lodged a complaint in 2024 alleging insider trading practices. A subsequent Taiwan Stock Exchange review of the transactions identified suspected breaches. The exchange then referred the matter to prosecutors for further investigation. This referral formed the basis for the current legal action.

The allegations centre on trades made around a significant corporate disclosure. The analysis reportedly indicated that Chang Kuo-hua and others traded Evergreen Marine shares during a statutory blackout period. This period preceded the disclosure of material information linked to the sale of EVA Airways by Evergreen Group. Trading during such a restricted window is central to the insider trading allegations. The connection to the airline sale gives the case its specific focus.

 

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Individuals Under Investigation

 

Several members of the founding family and company figures are implicated. Those summoned include Chang Kuo-hua and Chang Kuo-cheng, sons of founder Chang Yung-fa. Former senior Evergreen executive Ko Li-ching was also brought in alongside six others. Chang Kuo-hua is the Evergreen Group president and a son of the group's founder. The involvement of multiple family heirs places the founding family at the centre of the case.

The individuals face varying bail conditions and restrictions. Chang Kuo-hua was released on 3.75 million dollar bail and reportedly required to wear an electronic monitoring device. His brother Chang Kuo-cheng was released on lower bail of 312,500 dollars. Directors and managers including Tai Ching-chuan and Hsieh Shu-hui were released under similar restrictions on smaller bail amounts. Those released have been barred from international travel or changing residence during the investigation.

 

Chang Kuo-hua's Response

 

The Evergreen Group president has denied the allegations against him. Chang Kuo-hua acknowledged buying shares in a block trade after the market closed on 30 June 2024. However, he said he reported the transaction to the Taiwan Stock Exchange as required. He also stated that he has not sold any of the shares since the purchase. On this basis, he maintains that he has not profited from the transaction.

Details of the trade have drawn particular attention. Chang Kuo-hua reportedly bought part of a block of more than 90 million shares. Some of these shares were purchased in his wife's and his son's names. All three individuals have been released on bail and barred from travel or changing residence. These arrangements form part of the restrictions imposed during the ongoing investigation.

 

Company Response and Impact

 

Evergreen Marine has publicly acknowledged the investigation and searches. The company confirmed the matter in a filing on the Taiwan Stock Exchange. It stated that it is fully cooperating with the authorities during the investigation. The company also provided a statement affirming its position on the situation. This transparency reflects its obligations as a listed company.

The company has sought to reassure stakeholders about operational continuity. It stated that its business operations have not been affected by the investigation. According to the company, the incident has had no impact on its financial situation or business dealings. Operations reportedly continue as normal despite the searches. This messaging aims to separate the personal legal matters from the company's ongoing performance.