'Rhyme Investment Firm Stock Manipulation' Advisory Firm CEO Sentenced to Harsher Penalty in Second Trial

Seocho-dong Courthouse

[Asia Economy Reporter Seongpil Cho] The representative of an unregistered investment advisory firm who manipulated stock prices with false information in connection with the Lime Asset Management scandal received a heavier sentence in the appellate court.

The Criminal Division 2 of the Seoul High Court (Presiding Judge Seung-eun Yoon) on the 25th sentenced Park, who was indicted for violating the Capital Markets and Financial Investment Business Act, to 4 years in prison and a fine of 2 billion KRW, heavier than the first trial's 3 years in prison and a fine of 500 million KRW. An additional confiscation order of 500 million KRW was also issued. Kim, Park's business partner, was sentenced to 2 years and 6 months in prison and a fine of 1.5 billion KRW, heavier than the first trial's 2 years in prison and a fine of 210 million KRW. Broker Jung, who was in charge of boosting the stock price, was also sentenced to 4 years in prison, a fine of 2 billion KRW, and a confiscation of 500 million KRW, increasing the sentence from the original 2 years and 6 months in prison and a fine of 300 million KRW.

Park and Kim were indicted on charges of manipulating stock prices by posting false favorable information such as new business developments on stock cafes after receiving a request to boost the stock price of Kosdaq-listed S-Materials, which had received investment funds from Lime. Jung is accused of receiving a request from former Vice Chairman Park Mo of Lead to boost the stock price of S-Materials, passing it on to Park and his group, and collecting a commission.

Meanwhile, Hyun, who worked as an employee at Park's firm, and another Kim were sentenced to 1 year and 6 months in prison with a 3-year probation and a fine of 80 million KRW, the same as in the first trial.

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