Prosecutors Conduct Search and Seizure at Kiwoom Securities Over 'SG Incident' Involvement Allegations

The prosecution investigating the 'SG Securities-triggered stock price crash incident' is conducting a search and seizure at the headquarters of Kiwoom Securities, which is suspected of influencing the sharp decline in stock prices.

The Joint Investigation Unit on Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) is conducting a search and seizure at Kiwoom Securities' Yeouido headquarters on the morning of the 28th. It is reported that through this search and seizure, the prosecution is securing materials related to the involvement of former Dow Kiwoom Chairman Kim Ik-rae and the stock price crash in the 'SG Securities-triggered stock price crash incident.'

Earlier, on May 24, the prosecution also conducted a search and seizure at Kiwoom Securities' headquarters office. At that time, a search and seizure was simultaneously carried out at KB Securities' headquarters to secure materials related to Contracts for Difference (CFD) used as a means of market manipulation by CEO Ra Deok-yeon and his associates (age 42).

Kiwoom Securities and former Chairman Kim are suspected of being involved in the 'SG Securities-triggered stock price crash incident.' CEO Ra claimed that the cause of the sharp decline in the stock prices of eight stocks, including Dow Data and Samchully, was former Chairman Kim and Kiwoom Securities. He argued that the incident was triggered by Kim's block deal disposal. In response, former Chairman Kim and Kiwoom Securities filed a defamation lawsuit against CEO Ra. The case has been assigned to the Yeongdeungpo Police Station and is under investigation.

Although former Chairman Kim and Kiwoom Securities claimed that the sales were conducted legally by disclosing the block deal transaction statements, just one day after issuing their statement, on May 4, former Chairman Kim resigned from his positions as Dow Kiwoom Chairman and Chairman of the Kiwoom Securities Board.

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