Kim Ik-rae Booked on Suspicion of Involvement in 'SG Incident'... Kiwoom Securities and Residence Raided (Comprehensive)

The prosecution has officially launched an investigation into Kim Ik-rae, former chairman of Daou Kiwoom (73), who is suspected of being involved in the 'SG Securities-triggered stock price crash incident.'

[Image source=Yonhap News]

On the morning of the 28th, the Joint Investigation Unit for Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Dan Seong-han) conducted a search and seizure at the headquarters of Kiwoom Securities in Yeouido-dong, Yeongdeungpo-gu, Seoul, and at Kim’s residence to secure materials related to the stock price crash. The prosecution has booked Kim on charges of violating the Capital Markets Act.

Kiwoom Securities and Kim are suspected of being involved in the 'SG Securities-triggered stock price crash incident.' CEO Ra Deok-yeon of Hoan claimed that the cause of the sharp decline in the stock prices of eight stocks, including Daou Data and Samchully, was Kim and Kiwoom Securities. The incident reportedly escalated due to Kim’s block deal disposal. According to the Financial Supervisory Service’s electronic disclosure system, Kim disposed of 1.4 million shares of Daou Data (605.43 billion KRW) through a block deal on April 20, just before the stock price crash. A block deal is a transaction where a shareholder holding a large amount of stock finds a buyer and transfers the shares after the market closes.

In response, Kim and Kiwoom Securities filed a defamation lawsuit against CEO Ra. This case, assigned to the Yeongdeungpo Police Station, was transferred to the Guro Police Station following the investigation of the complainant Kim’s testimony and according to transfer guidelines.

Kim and Kiwoom Securities claimed that the block deal transaction statement was disclosed and that the sale was conducted legally. However, just one day after issuing this statement, on May 4, Kim resigned from his positions as chairman of Daou Kiwoom and chairman of the Kiwoom Securities board and announced that he would return the proceeds from the controversial sale of Daou Data shares to society.

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