Prosecutors Indict Naver Stock Cafe Leader Over 'Massive Limit-Down Incident'

Operators and members of a Naver stock cafe involved in the '5-stock limit-down incident' and suspected of market manipulation have been brought to trial. However, the prosecution believes that the number of manipulated stocks is four, excluding one stock that requires further analysis.

[Image source=Yonhap News]

On the 28th, the joint investigation team of the Seoul Southern District Prosecutors' Office, the Financial Services Commission, and the Financial Supervisory Service announced that they had arrested and indicted Kang Ki-hyeok (52), operator of the Naver stock-related cafe 'Bareun Investment Research Institute,' along with cafe members Son and Park, on charges of violating the Capital Markets Act. Another member was also indicted without detention.

Kang and others are accused of manipulating the stock prices of four listed companies, including Dongil Industry, through methods such as wash trading from January 2020 to last June, obtaining illicit gains worth approximately 36.1 billion KRW.

Five stock items?Dongil Industry, Dongil Metal, Manho Steel, Daehan Textile, and Bangrim?showed a mass limit-down on the 14th of last month, raising suspicions that the 'Bareun Investment Research Institute' cafe, which frequently mentioned these stocks, was involved.

However, the prosecution believes Kang and others were involved with four of the stocks, excluding Bangrim. A prosecution official stated, "Further analysis is needed for one stock."

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