Prosecutors: "Possibility of Summoning Former Chairman Kim Ik-rae... SG Securities Investigation Results May Be Announced as Early as This Month"

The prosecution is intensifying its investigation into former Dow Kiwoom Group Chairman Kim Ik-rae and Seoul City Gas Chairman Kim Young-min, who sold large amounts of stock just before the stock price plummeted in the 'SG Securities-triggered stock price crash' incident. It is known that they are examining the connection with Ra Deok-yeon, the key figure in the SG Securities stock price crash, and whether insider information was used. The prosecution plans to announce the investigation results of the SG Securities stock price crash as early as this month.

A Seoul Southern District Prosecutors' Office official said at a regular briefing on the 1st, "We are looking into whether former Chairman Kim is responsible for causing the stock price crash," adding, "We are comprehensively examining whether the stock sales timed with the crash were coincidental or if they were due to gift tax issues unrelated to Ra Deok-yeon." Furthermore, the official said, "Since (former Chairman Kim) even held a press conference, the basic stance is that he is not unaware," but added, "If there are suspicions not apparent on the surface, we will certainly summon him for investigation." However, the official added, "It is still early to draw conclusions about the connections between Ra Deok-yeon’s group and the major shareholders."

Former Chairman Kim is suspected of having prior knowledge of Ra’s stock price manipulation and disposing of 1.4 million shares of Dow Data through an after-hours block deal on April 20. On the 28th of last month, the prosecution conducted a search and seizure at the Kiwoom Securities headquarters in Yeouido-dong, Yeongdeungpo-gu, Seoul, and at former Chairman Kim’s residence, securing materials related to the stock price crash. The residences of Kim Dong-jun, CEO of Kiwoom Investment and son of former Chairman Kim, as well as those of employees from Kiwoom Group’s Strategic Management Office, were also included in the search and seizure.

The prosecution is also examining allegations against Chairman Kim. He is suspected of having prior knowledge of Ra’s stock price manipulation by disposing of a large amount of Seoul Gas shares before the stock price plummeted. On April 17, Chairman Kim sold 100,000 shares of Seoul Gas in a block deal, securing approximately 45.7 billion KRW. Around 50 investors who entrusted money to Ra have submitted petitions to the prosecution and the Financial Services Commission requesting an investigation into Chairman Kim’s insider trading suspicions.

A prosecution official said, "We are reviewing the allegations raised against Chairman Kim in relation to the stock price crash," adding, "It is difficult to say that suspicions such as whether he was connected to Ra Deok-yeon’s faction or how he knew to sell the stocks have been clearly confirmed, so we need to investigate whether his motives and behavior are in the same context as former Chairman Kim’s."

Meanwhile, the prosecution plans to conclude the investigation into the SG Securities-triggered stock price crash case as early as this month. The official said, "The investigation results could be announced as early as this month, but it could also be delayed," adding, "Since summer is passing, there is a recognition that we need to grasp the overall situation to some extent."

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