Prosecutors Freeze Assets Worth 14.7 Billion Won of Edison Motors Stock Manipulation Group

The assets of a group suspected of participating in stock price manipulation involving electric vehicle company Edison Motors have been frozen.

According to the legal community on the 27th, the Seoul Southern District Prosecutors' Office confiscated approximately 14.7 billion KRW in assets from six individuals accused of violating the Capital Markets Act through stock price manipulation on the 19th and 23rd of this month.

The court's decision to approve the confiscation was made after the prosecution analyzed account transaction details and investigated related parties to uncover the use of nominee assets. However, the group denied holding any nominee assets.

They are accused of inflating the stock prices of affiliated companies by spreading news that Edison Motors would acquire Ssangyong Motor and thereby illicitly profiting.

The Financial Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office indicted former Edison Motors Chairman Kang Yeon-kwon and three executives last October. Two of them are currently on trial in detention. In December of the same year, six individuals involved in Edison Motors' stock price manipulation were also indicted. On the 19th, three leading figures in the Edison Motors stock manipulation were additionally detained and are under investigation.

The group is suspected of manipulating Edison EV's stock price from May 2021 to March last year by issuing false disclosures and media materials disguised as efforts to acquire Ssangyong Motor, promote electric passenger car business, and raise large-scale funds. During this process, they are suspected of obtaining illicit profits amounting to 162.1 billion KRW from approximately 125,000 small investors.

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