Prosecutors Request Arrest Warrants for Six Fundraisers in 'Edison Stock Manipulation' Case

[Asia Economy Reporter Yoo Byung-don] The prosecution investigating the Edison Motors stock manipulation case is expanding the investigation to the funding sources for stock purchase payments.

On the 15th, the Financial Securities Crime Joint Investigation Team (Chief Dan Seong-han) of the Seoul Southern District Prosecutors' Office announced that it had requested arrest warrants for six people, including Han Mo, on charges including violation of the Capital Markets Act.

The prosecution believes that they played a role in financing and other aspects while boosting the stock price of EdisonEV, an affiliate of Edison Motors, by promoting the favorable news of pursuing the acquisition of Ssangyong Motor and realizing profits.

Han and others' pre-arrest detention hearings (warrant substantive examination) are scheduled to be held on the 16th at the Seoul Southern District Court.

The prosecution plans to specifically identify where the funds used for stock purchases were sourced from and the amount of illegal profits gained through stock manipulation once they secure custody of the suspects.

Edison Motors was selected as the preferred bidder for the acquisition of Ssangyong Motor in October last year and signed a merger and acquisition (M&A) contract. At that time, the stock price of EdisonEV (now Smart Solutions), which was the company's funding channel, surged on expectations of the Ssangyong Motor acquisition.

During this process, the major shareholder investment association of EdisonEV sold most of its shares and realized profits, sparking controversy over a 'mukjji' (exit after profit-taking). Ultimately, the merger was canceled as Edison Motors failed to pay the remaining acquisition funds.

Earlier, on the 24th of last month, the prosecution indicted Kang Young-kwon, chairman of Edison Motors (64, detained), and three former executives of Edison Motors and EdisonEV on charges of violating the Capital Markets Act, alleging they gained illegal profits of 162.1 billion KRW by inflating EdisonEV's stock price.

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