'SG Securities-Induced Crash' Followed by Kiwoom Securities, KB Securities Also Raided
The prosecution investigating the stock price manipulation and crash incident originating from Societe Generale (SG) Securities conducted a search and seizure at KB Securities on the 25th, following Kiwoom Securities.
![[Image source=Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2023051221180529761_1683893896.jpg)
The Joint Investigation Team, consisting of the Financial Securities Crime Task Force of the Seoul Southern District Prosecutors' Office (headed by Dan Sung-han) and financial authorities, reportedly sent investigators to Kiwoom Securities and KB Securities located in Yeouido, Yeongdeungpo-gu, Seoul on the morning of the 24th to carry out the search and seizure.
Kiwoom Securities and KB Securities provide CFD product services, which were used as tools for market manipulation by CEO Ra Deok-yeon and his associates. CFDs refer to over-the-counter derivatives that can leverage up to 2.5 times the investment capital.
Earlier, the prosecution reportedly secured materials related to Contracts for Difference (CFD) at the Kiwoom Securities headquarters office. It is reported that former Dow Kiwoom Group Chairman Kim Ik-rae was not included in this search and seizure. Currently, former Chairman Kim is under suspicion of having prior knowledge of CEO Ra’s group’s market manipulation circumstances, as he reportedly made significant profits through block deals (large trades outside regular hours) before the stock price crash.
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Meanwhile, the Financial Securities Crime Task Force of the Seoul Southern District Prosecutors' Office is conducting an investigation into the 'SG Securities-originated crash incident' together with the Financial Services Commission and the Financial Supervisory Service as a joint investigation team.
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