Hospital Director and Sales Director Involved in 'SG Incident' Stock Manipulation Arrested for "Flight Risk"

Hospital director and sales director involved in stock manipulation alongside CEO Ra Deok-yeon (42) have been detained. However, the arrest warrant for a current bank employee suspected of attracting investors and receiving bribes was dismissed.

On the 16th, Judge Kim Ji-sook, in charge of warrants at the Seoul Southern District Court, conducted a pre-arrest detention hearing for hospital director Joo (40) and sales director Kim (40), who are accused of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes related to concealing criminal proceeds, and issued pre-arrest detention warrants for them.

Mr. Joo was in charge of sales targeting a group of high-value investors who are doctors, while sales director Kim served as the auditor of management consulting firm E, where CEO Ra is an inside director.

Judge Kim stated the reasons for issuing the warrants, saying, "Mr. Joo poses a flight risk and a risk of evidence tampering, and Mr. Kim poses a flight risk."

On the same day, the warrant for Mr. Kim (50), head of the corporate finance team at branch A of a bank, who was also questioned, was dismissed. Mr. Kim faces charges of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes (including bribery). As a current bank employee, he is suspected of participating in CEO Ra’s group’s market manipulation crimes by attracting investors and receiving bribes.

Judge Kim explained the dismissal, stating, "There is room for dispute, so it is necessary to guarantee the opportunity for defense, and since most of the evidence has been secured, it is difficult to see a risk of flight or evidence tampering." He added, "Considering the degree of evidence for the crime, his occupation, and social ties, it is difficult to recognize the necessity and appropriateness of detention."

Earlier, on the 26th of last month, the prosecution indicted CEO Ra, his closest aide Byun (40), and former professional golfer Ahn (33) on charges of violating the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes. On the 1st, pre-arrest detention warrants were also issued for Jang (35), who managed criminal proceeds, Park (37), who oversaw stock trading, and Jo (41), who was responsible for investor recruitment and client management.

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