Police Clear Kim Geon-hee of 'Using Internal Information of Deutsche Motors' Charges

The police investigating Kim Geon-hee, who is suspected of involvement in stock price manipulation of Deutsche Motors, have judged the charge of having prior knowledge of internal information as 'no charges'.

According to the police on the 28th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency decided on the 26th that there was no crime constituted regarding Kim's alleged use of undisclosed important information under the Capital Markets Act, and dismissed the charges. However, the police plan to continue investigating whether Kim was involved in manipulating the stock price of Deutsche Motors.

Earlier, the Democratic Party's Committee for Countermeasures Against Prosecutorial Dictatorship and Political Oppression (the Committee) filed a complaint with the police on the 11th of last month, stating, "The prosecution viewed that former Deutsche Motors Chairman Kwon Oh-soo's intent to manipulate the stock price ended on December 7, 2012, but circumstances have emerged showing that the crime did not end, as the stock price rose again in early 2013," accusing Kim Geon-hee.

The Committee holds the position that former Chairman Kwon, during 2012-2013, mobilized funds from acquaintances including Kim Geon-hee to secure profits from price differences and liquidity while trading Deutsche Motors' new stock subscription rights. It is said that Kim purchased 510,464 new stock subscription rights from former Chairman Kwon on November 13, 2012, at an off-market price of 195.9 won per share, and sold the subscription rights again to the Taiko Private Equity Fund on June 27, 2013, at 358 won per share, achieving a return of 82.7% in about eight months.

Furthermore, the Committee claims that Kim Geon-hee likely had prior knowledge of Deutsche Motors' investment attraction information and thus also alleges the use of undisclosed important information under the Capital Markets Act.

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