Prosecutors Summon Stock Cafe Operator for Third Day Over Alleged Involvement in 5 Stocks' Limit-Down Cases

The prosecution is investigating Kang Ki-hyuk, the operator of the Naver cafe Barun Investment Research Institute, who is suspected of being involved in the 'massive limit-down incident of 5 stocks,' by summoning him for questioning for three consecutive days.

[Image source=Yonhap News]

On the 5th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) announced that Kang has been summoned and questioned as a suspect for three days from the 3rd to the 5th.

According to the prosecution, Kang is suspected of manipulating stock prices through collusive trading of five stocks?Dongil Industry, Dongil Metal, Manho Steel, Daehan Textile, and Banglim?together with his older sister and others from January 2020 to May this year. These five stocks recorded a massive limit-down on the 14th of last month.

Kang, the operator of the Naver stock-related cafe 'Barun Investment Research Institute,' is reported to have frequently mentioned and recommended these five stocks to members in the cafe.

The prosecution, believing Kang to be involved in the massive limit-down incident of the five stocks, imposed a travel ban on him and conducted a search of his residence last month. The prosecution estimates that Kang gained an unfair profit of 10.4 billion KRW through price manipulation. The amount of unfair profit may change depending on the investigation.

On the 19th of last month, Kang denied the allegations in a phone interview with Asia Economy, stating, "Providing information to investors and coordinating investments without adversely affecting supply and demand is the core of shareholder activism," and added, "It is a situation where natural cross-trading among shareholders is being accused as collusive trading."

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