'Rhyme Investment Firm Stock Manipulation' Group First Trial Sentencing Today... Former Executive of Hyanggun Sangjohoe Also Sentenced

Prosecutors Demand 3 to 8 Years Imprisonment for 6 Individuals Operating Fraudulent Investment Firms and Spreading False Information
Former Executives of Hyanggun Sangjohoe Also Face 3 and 10 Years Imprisonment for Embezzling Hundreds of Billions in Assets

[Asia Economy Reporter Yoo Byung-don] The first trial verdict for a group accused of spreading false information to boost the stock price of Kosdaq-listed S-Materials, which received funds from Lime Asset Management funds, will be held on the 26th.

The Seoul Southern District Court Criminal Division 11 (Chief Judge Lee Hwan-seung) will conduct the sentencing trial at 10 a.m. on the same day for six people, including Park, who were indicted for violating the Capital Markets Act.

They are accused of operating a quasi-investment advisory firm and spreading false information about Lime investment companies to inflate stock prices. Investigations revealed that they posted false articles several times on various internet stock cafes claiming free capital increases or new business ventures.

They are also accused of providing false information to paid members to induce stock purchases. Additionally, they face charges of manipulating market prices through unfair methods such as high-priced purchase orders.

Earlier, at the sentencing hearing held on the 10th, the prosecution requested an 8-year prison sentence, a fine of 8 billion KRW, and a confiscation of 1.6 billion KRW for Park, an executive of the quasi-investment advisory firm, and a 7-year prison sentence, a fine of 6 billion KRW, and a confiscation of 1.6 billion KRW for his partner Kim.

The prosecution also requested 3 years imprisonment and a 300 million KRW fine each for current employees Hyun, Kim, and Lee. Broker Jung, who was accused of requesting stock price boosting, was requested to receive 8 years imprisonment, an 8 billion KRW fine, and an 800 million KRW confiscation.

In their final arguments, they partially denied the charges, stating that they did not know the information they spread was false. Their defense attorney argued, "There is no confirmation that members suffered damages from the quasi-investment advisory business, and rather, after excluding certain investment items, they received words of thanks from members."

Additionally, a sentencing trial will be held for former executives of the Veterans Association Funeral Service (Hyanggun Sangjohoe), who were indicted for embezzling hundreds of billions of won in assets after acquiring Hyanggun Sangjohoe amid the Lime Asset Management private fund redemption suspension incident.

Earlier, at the sentencing hearing held on October 13, the prosecution requested 10 years imprisonment for former Vice Chairman Jang and 3 years imprisonment for former Vice President Park of Hyanggun Sangjohoe.

They were arrested and indicted on charges of embezzling approximately 37.8 billion KRW in assets from Hyanggun Sangjohoe after acquiring it through a no-capital merger and acquisition (M&A) method with former Star Mobility Chairman Kim Bong-hyun, who was identified as the mastermind behind the "Lime incident."

They are also accused of hiding the embezzlement and reselling Hyanggun Sangjohoe to Company A Funeral Service, receiving 25 billion KRW as a contract deposit and embezzling it.

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