'Stock Manipulation Allegations' Kang Young-kwon Edison Motors Chairman's First Trial on December 5

[Asia Economy Reporter Yoo Byung-don] The trial of Kang Young-kwon, chairman of Edison Motors, who is suspected of stock price manipulation following the failed acquisition of Ssangyong Motor, will begin on December 5.

On the 31st, the Criminal Division 11 of the Seoul Southern District Court (Chief Judge Sung Bo-gi) announced that the first hearing for Kang and three other executives, who were detained and indicted on charges including violations of the Capital Markets and Financial Investment Business Act, will be held at 11 a.m. on December 5.

Kang and others are accused of engaging in unfair trading by boosting stock prices under the pretext of pursuing the acquisition of Ssangyong Motor.

Edison EV (now Smart Solutions), a listed company that served as the funding channel for Edison Motors, saw its stock price surge following 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 to realize profits, causing losses to ordinary shareholders and sparking controversy over stock price manipulation. Edison EV, whose trading was suspended, filed for bankruptcy in court last May.

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

The prosecution accelerated the investigation by conducting raids on Edison Motors and related companies in August.

The prosecution believes that Chairman Kang and others deliberately inflated stock prices with false information related to mergers and acquisitions (M&A) and sold shares in advance.

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