Prosecutors Conduct Search and Seizure at Ildong Pharmaceutical Headquarters... 'Owner Family Stock Price Manipulation' Allegations

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The prosecution has detected allegations of stock price manipulation (market manipulation) involving the owner family of Ildong Pharmaceutical Group and has launched an investigation. The prosecution believes that the owner family manipulated the market while increasing their shareholding ratio to secure management rights.

The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Moon Hyun-cheol) announced on the 11th that it recently conducted a search and seizure at Ildong Holdings and the headquarters of Ildong Pharmaceutical in Seocho-gu, Seoul, on charges including violation of the Capital Markets Act. A prosecution official stated, "We cannot disclose specific details as the matter is under investigation."

It is reported that through the search and seizure, documents containing reports from the board of directors and shareholders' meetings were secured. It is also known that the prosecution confiscated mobile phones and portable storage devices of CEO Yoon Woong-seop of Ildong Pharmaceutical and other executives.

Meanwhile, it has been reported that there are some indications that during the process of splitting the holding company Ildong Holdings and the operating company Ildong Pharmaceutical from 2016 to 2017, CEO Yoon and other management artificially raised the stock price to increase the owner family's shareholding ratio.

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