Evidence of Large Stock Sales Before Crash by Kim Ik-rae Former Chairman's Elder Brother
Kiwoom Securities "Unrelated to Former Chairman Kim's Sale"
Just before the 'SG Securities-triggered crash,' it was discovered that the older brother of Kim Ik-rae, former chairman of Daou Kiwoom Group, who came under investigation for selling a large volume of Daou Data shares, also sold the same shares before the stock price plummeted.
According to the legal and financial investment sectors on the 2nd, the joint investigation team of the Seoul Southern District Prosecutors' Office and financial authorities confirmed that Kim's older brother, Mr. Kim (74), sold Daou Data shares worth 15 billion KRW from the end of December last year to early April this year. Daou Data, the holding company of Daou Kiwoom Group, suddenly hit the lower price limit on April 24 due to the SG Securities-triggered crash.
Kiwoom Securities stated that Mr. Kim's transactions are unrelated to the crash. A representative from Kiwoom Securities said, "About 80% of the shares sold were disposed of by March this year," and added, "It is not related to the sales by former Chairman Kim." Regarding the fact that there was no disclosure despite Mr. Kim being a special related party of former Chairman Kim, they explained, "Mr. Kim and the real estate investment company he owns were recognized as independently managed relatives by the Fair Trade Commission in August 2019, thus excluded from special related parties."
Hot Picks Today
As Samsung Falters, Chinese DRAM Surges: CXMT Returns to Profit in Just One Year
- "Most Americans Didn't Want This"... Americans Lose 60 Trillion Won to Soaring Fuel Costs
- Trump: "No Concessions to Iran... They Will Soon Know What's Coming"
- Samsung Union Member Sparks Controversy With Telegram Post: "Let's Push KOSPI Down to 5,000"
- "Why Make Things Like This?" Foreign Media Highlights Bizarre Phenomenon Spreading in Korea
The prosecution suspects that former Chairman Kim used insider information to sell a large volume of Daou Data shares before the stock price crashed. On April 20, former Chairman Kim sold 1.4 million Daou Data shares through an off-hours block deal. On the 28th of last month, the prosecution conducted a search and seizure at the Kiwoom Securities headquarters in Yeouido-dong, Yeongdeungpo-gu, Seoul, former Chairman Kim's residence, the residence of Kim Dong-jun, CEO of Kiwoom Investment and son of former Chairman Kim, and the residences of employees from Kiwoom Group's Strategic Management Office. It is known that the prosecution secured materials related to the stock price crash through the search and seizure.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
