Prosecutors Request Dissolution Orders for 10 Corporations Linked to La Deok-yeon in the 'SG Incident'

The prosecution investigating the 'SG Securities-triggered stock price crash incident' has filed a dissolution order for 10 corporations established by CEO Ra Deok-yeon (42) and his associates for the purpose of committing the crime.

On the 14th, the Seoul Southern District Prosecutors' Office announced that it reviewed whether 28 companies established by Ra and his associates, including Hoan FG, fall under the dissolution order according to the Commercial Act, and filed a dissolution order for 10 corporations, including Hoan FG, the day before. This is to hold legal responsibility not only for the natural persons who directly committed the crime but also for the corporations that harmed the public interest, and to prevent corporations from being reused for criminal activities.

The prosecution explained that after reviewing statements from the main culprit Ra and other corporate executives, account transaction details under the corporation's name, tax invoice and other tax-related documents, they filed dissolution orders when the requirements were met. According to Article 176 of the Commercial Act, a company may be ordered to dissolve by request of interested parties or prosecutors, or ex officio, if △the purpose of establishment is illegal, △business has not started or has been suspended for more than one year, or △directors have violated laws or articles of incorporation.

The corporations of Ra and his associates that meet the requirements include cases where ▲the corporation was established and operated to conceal crimes such as collusive trading and to hide criminal proceeds (illegal purpose of establishment), ▲no business was conducted other than fabricating false sales to disguise acquisition of criminal proceeds (business suspended for more than one year), and ▲the corporation’s CEO or executives are accomplices in the crime (violation of laws or articles of incorporation by corporate executives).

Regarding the selection and review of corporations subject to dissolution, the Financial and Securities Crime Joint Investigation Team and the Public Interest Litigation Team of the Seoul Southern District Prosecutors' Office collaborated. The prosecution stated, "We have strictly responded to the illegal acts of market manipulation and money laundering crimes hidden behind corporations, while simultaneously blocking the continuation of illegal companies."

Besides the corporations for which dissolution orders were filed this time, the prosecution plans to review establishment and operation-related documents for the remaining corporations and actively consider filing dissolution orders.

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