‘Stock Manipulation Allegations’ Kang Young-kwon, Edison Motors Chairman, Detained on "Evidence Tampering and Flight Risk" Concerns

One Related Person Detained... The Other One Dismissed

Kang Young-kwon, chairman of Edison Motors, who has been suspected of stock manipulation following the failed acquisition of Ssangyong Motor, is attending the pre-arrest detention hearing at 10:30 a.m. on the 7th at the Seoul Southern District Court.
Photo by Yoo Byung-don tamond@

[Asia Economy Reporter Yoo Byung-don] Kang Young-kwon, chairman of Edison Motors, who faced allegations of stock price manipulation following the failed acquisition of Ssangyong Motor, has been arrested.

On the 7th, Hong Jin-pyo, the presiding judge in charge of warrants at the Seoul Southern District Court, conducted a pre-arrest detention hearing (warrant substantive examination) for Chairman Kang and one related party, who are accused of violating the Capital Markets Act, and issued an arrest warrant citing concerns over evidence destruction and flight risk.

However, the arrest warrant was dismissed for the other related party, as their involvement in the crime was relatively minor, and since the co-conspirators were being detained, it was deemed unlikely that there would be concerns about evidence destruction or flight beyond the exercise of defense rights.

At around 10:17 a.m. on the same day, Chairman Kang and others appeared at the Seoul Southern District Court for the pre-arrest detention hearing. When asked by reporters about their acknowledgment of the charges and the reason for absence the previous day, they briefly replied, “No comment,” before entering the courthouse.

The Joint Financial and Securities Crime Investigation Team of the Seoul Southern District Prosecutors' Office had requested pre-arrest warrants for these three individuals on the 4th on charges including violation of the Capital Markets Act.

Edison EV (now Smart Solutions), a listed company that served as the funding channel for Edison Motors, saw its stock price surge on news of the Ssangyong Motor acquisition attempt, but the merger fell through after failing to secure acquisition funds.

During this process, the major shareholder investment association sold most of its shares and realized profits, causing losses to ordinary shareholders and sparking controversy over stock price manipulation. Edison EV, whose trading was suspended, filed for bankruptcy in court in May.

After detecting Edison Motors’ suspected violations of the Capital Markets Act and unfair trading practices, the Financial Supervisory Service bypassed the Securities and Futures Commission review and swiftly transferred the case to the Seoul Southern District Prosecutors' Office via a 'fast track' process.

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