Controversy Over Double Investigation in Stock Manipulation Case, Ultimately Transferred to Prosecution

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The police, who had conducted separate investigations into a stock price manipulation case involving a KOSDAQ-listed company and even carried out raids on the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange, have ultimately handed the case over to the prosecution.

The Metropolitan Investigation Unit of the Seoul Metropolitan Police Agency announced on the 18th that it recently transferred the case involving KOSDAQ-listed company A, which was under investigation for violations of the Capital Markets Act, to the Seoul Central District Prosecutors' Office.

Earlier, while investigating financial incidents related to company A, the police raided the Financial Services Commission, the Financial Supervisory Service, and the Korea Exchange, securing related documents. After the raids, the Financial Services Commission protested to the police, stating that "an investigation into company A had already been completed and referred to the prosecution, yet the police conducted another raid on the same case." The case was already being investigated by the Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office.

As a result, there was speculation that the prosecution and police might be engaged in a turf war over investigative authority adjustments.

In response, Lee Yong-pyo, Commissioner of the Seoul Metropolitan Police Agency, explained, "Although both the prosecution and police are investigating the same company, the charges and subjects under investigation differ. We are currently consulting with the prosecution regarding the issue of having a single investigative authority."

A police official stated, "Since the prosecution's investigation had progressed significantly and considering that conducting additional raids by both the prosecution and police would be redundant, the case was transferred to the prosecution."

This content was produced with the assistance of AI translation services.