Prosecution Arrests Ra Deok-yeon on Stock Manipulation Charges in 'SG-triggered Plunge' Case

Accused of Manipulating Stock Prices through Collusive Trading and Embezzling Criminal Proceeds
Illegally Gained 264 Billion KRW from Market Manipulation and Earned 132 Billion KRW in Commissions

CEO Ra Deok-yeon is attending the pre-arrest detention hearing at the Seoul Southern District Court on the morning of the 11th. Photo by Yonhap News

Ra Deok-yeon (42), CEO of Hoan, who is accused of leading stock price manipulation in the Soci?t? G?n?rale (SG) Securities crash incident, was detained on the 11th.

Yoo Hwan-woo, the chief judge in charge of warrants at the Seoul Southern District Court, issued the arrest warrant after conducting a pre-arrest interrogation (warrant hearing) of CEO Ra, who is charged with violations of the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes (Money Laundering). The judge stated, "There is a risk of flight and concern over evidence destruction." CEO Ra underwent the warrant hearing from 10:30 a.m. for 2 hours and 45 minutes. He did not respond to reporters' questions before or after the hearing, such as "Do you admit to the price manipulation charges?" or "What parts did you clarify?"

The Joint Investigation Team for Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office (led by Dan Sung-han), along with the Financial Services Commission and the Financial Supervisory Service, arrested CEO Ra on the 9th on charges of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes (Money Laundering) and requested an arrest warrant.

According to the prosecution, CEO Ra is accused of inflating the stock prices of several companies including Samchully, Dow Data, and Seoul Gas by engaging in prearranged trading, where he received personal information such as mobile phone numbers and securities accounts from investors and set predetermined buy and sell prices to trade stocks. He is also charged with operating an investment advisory firm without registering with financial authorities while attracting investors, embezzling part of the profits as fees through unrelated corporations, and laundering criminal proceeds by purchasing golf courses overseas.

The prosecution has identified that CEO Ra and his associates gained an unfair profit of 264 billion KRW through price manipulation, of which half, 132 billion KRW, was taken as fees. The amount of criminal proceeds is expected to increase as the investigation progresses.

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