'Deoicheu Motors Stock Manipulation' Allegation: Kwon Osu Faces Detention Decision Today

Deutsche Motors Headquarters, Seongdong-gu, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The pre-trial detention hearing for Kwon Osu (63), chairman of Deutsche Motors, who is accused of stock price manipulation and breach of trust, will be held.

According to the court on the 16th, at 10:30 a.m., Judge Lee Sechang, in charge of warrants at the Seoul Central District Court, will conduct Kwon's detention hearing. The decision on detention is expected to be made either later that afternoon or early on the 17th.

Previously, Kwon, as the largest shareholder or CEO of Deutsche Motors, is accused of leaking internal company information to boost stock prices and engaging in stock price manipulation to prevent price declines.

It has been investigated that Kwon mobilized external forces as 'players' to create stronger buying momentum. The prosecution believes Kwon contacted people from securities firms or investment advisory companies, providing various favorable internal information and requesting stock price support or management.

The prosecution's view is that from December 2009 for about three years, Kwon and others directly purchased approximately 15.99 million shares of Deutsche Motors stock (worth about 63.6 billion KRW) or induced customers to buy through illegal means.

In particular, since suspicions have been raised that Kim Gunhee, wife of Yoon Seok-yeol, the People Power Party's presidential candidate, was involved as a 'jeonju' (broker), if Kwon is detained, the prosecution's investigation into Kim may accelerate.

Meanwhile, three people including Lee, the CEO of an investment company who conspired with Chairman Kwon in stock price manipulation (violating the Capital Markets Act), were indicted in custody on the 25th of last month and the 5th of this month, with the first trial scheduled for the 19th. However, another person who acted as a stock price manipulation 'player' with them disappeared before the detention hearing scheduled on the 6th of last month.

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