'Deoicheu Motors Stock Manipulation' Kwon Osu, Trial Proceedings Begin Today

Kwon Oh-soo, chairman of Doich Motors, who is suspected of stock manipulation and breach of trust, is attending the pre-arrest detention hearing at the Seoul District Court in Seocho-gu, Seoul on the 16th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Hyung-min] The trial procedure for Kwon Oh-soo, chairman of Deutsch Motors (63, detained), who was indicted on charges of illegally inflating his company's stock price, will begin on the 14th.

This case, involving Kim Gun-hee, spouse of Yoon Seok-yeol, the presidential candidate of the People Power Party, is expected to see the prosecution's investigation into Kim soon intensify. Political and legal circles are focusing their attention on whether testimonies related to Kim will emerge during Chairman Kwon's trial, which starts first.

The Seoul Central District Court Criminal Division 23 (Presiding Judge Yoo Young-geun) will hold the first pretrial conference for Chairman Kwon's case at 10 a.m. on the same day.

The pretrial conference is a procedure held before the formal trial, where the prosecution and the defendant's side organize the key issues and discuss plans for evidence examination. Unlike the formal trial, the defendant is not obligated to attend, so Chairman Kwon is not expected to appear in court that day.

Chairman Kwon is accused of conspiring with a 'stock manipulation operator,' a 'boutique' investment advisory firm, and current and former securities company executives and employees from December 2009 to December 2012, using 157 accounts under 91 names to inflate Deutsch Motors' stock price.

In particular, after Deutsch Motors' stock price continued to decline following a reverse merger at the end of 2008, Chairman Kwon faced demands from investors to boost the stock price. The prosecution believes he planned stock manipulation by commissioning Mr. Lee, known in the securities industry as a 'stock manipulation operator.' Mr. Lee requested stock supply and demand from securities company executive Mr. Kim, who, along with fellow securities employees and the 'boutique' investment advisory firm operators, engaged in coordinated trading and high-price purchases to manipulate the market, raising the stock price from the high 2,000 won range to about 8,000 won.

This case also raised suspicions that Kim, spouse of candidate Yoon, played the so-called 'jeonju' role, providing funds for the stock manipulation.

The prosecution has indicted Kim, Mr. Lee, and two others involved in the stock manipulation on charges of detention, while indicting Chairman Kwon and four others, including securities company employees, businessmen, and investors, without detention.

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