Prosecutors Ban Departure of Stock Cafe Operator Related to '5 Stocks Hitting Lower Limit'

The prosecution has imposed a travel ban on the operator of a stock investment cafe suspected of being involved in the 'limit-down on 5 stocks' incident.

[Image source=Yonhap News]

According to the legal community on the 15th, the Seoul Southern District Prosecutors' Office imposed a travel ban on Mr. Kang, the operator of a Naver cafe related to stock investment, the day before.

Mr. Kang has been embroiled in allegations of stock price manipulation as the stock prices of five stocks?Dongil Industry, Dongil Metal, Manho Steel, Daehan Textile, and Banglim?plummeted to their daily limit down en masse the previous day.

Financial authorities and investigative agencies are expected to launch an investigation into market manipulation starting with the travel ban on Mr. Kang. The Financial Supervisory Service halted trading of the five stocks from that day and decided to verify disclosure inquiries after the stocks hit their daily limit down the previous day.

In response to the allegations, Mr. Kang stated, "The decline was triggered by securities firms restricting loans and not extending maturities on small-cap stocks after the 'SG incident,'" calling it an "absurd rumor."

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