Prosecutor General Lee Won-seok: "Thoroughly Identify Beneficiaries of Unfair Gains in SG Securities Stock Manipulation"

Received reports on investigation status... "Strict punishment to prevent damage to trust in the capital market"

Prosecutor General Lee Won-seok instructed, regarding the SG (Soci?t? G?n?rale) Securities stock manipulation case, to "ensure that trust in the capital market is no longer damaged."

Regarding the stock manipulation allegations that surfaced due to the crash triggered by SG (Soci?t? G?n?rale) Securities, a golf academy in Gangnam-gu, Seoul, is suspected of acting as a recruitment channel for investors and collecting money under the name of commissions.
[Image source=Yonhap News]

On the morning of the 3rd, Prosecutor General Lee received a report on the investigation status and future plans of the SG Securities stock manipulation case from Yang Seok-jo, head of the Seoul Southern District Prosecutors' Office.

Prosecutor General Lee told Prosecutor Yang, "Cooperate organically with financial authorities such as the Financial Services Commission and the Financial Supervisory Service regarding unfair trading crimes that distort the order of the capital market and cause large-scale damage to many investors," and ordered, "Thoroughly identify and strictly punish those involved in stock manipulation and beneficiaries of illegal gains."

The suspicion of stock manipulation involving SG Securities arose as eight stocks, including Dow Data, Samchully, Seoul City Gas, and Seonkwang, recorded consecutive daily limit-down prices starting from the 24th of last month due to sell orders originating from SG Securities. Authorities believe that the stock manipulation group recruited investors and used their mobile phones and securities accounts for collusive trading to inflate stock prices.

Currently, a joint investigation team centered on the Financial and Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office has been formed. The investigation team includes personnel from the Capital Market Investigation Division of the Financial Services Commission and the investigation and inspection staff of the Financial Supervisory Service.

The number of victims in this stock price crash incident is estimated to be about 1,000, with damages amounting to approximately 80 billion KRW. Financial authorities are closely examining the stock manipulation allegations.

The Seoul Southern District Prosecutors' Office joint investigation team has indicted at least six individuals, including Ra Deok-yeon, the CEO of an investment advisory firm and a former professional golfer identified as Mr. A, who are key figures in this incident.

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