Prosecutors Freeze Additional 23.7 Billion KRW of Assets of La Deok-yeon and Associates in 'SG Incident'

Seizure and Preservation of Ra Deok-yeon's Group Assets Totaling 45.8 Billion KRW

The prosecution investigating the 'SG Securities Stock Price Crash Incident' has additionally frozen assets worth 23.7 billion KRW belonging to Ra Deok-yeon, CEO of Hoan (42), who has been identified as the main culprit in stock price manipulation, and his associates.

On the 11th, the joint investigation team of the Seoul Southern District Prosecutors' Office, the Financial Services Commission, and the Financial Supervisory Service announced that, together with the Crime Proceeds Recovery Team, they had additionally seized approximately 23.7 billion KRW of assets belonging to CEO Ra and his associates the previous day.

According to the prosecution, the additionally frozen assets include local corporation stocks and loan repayment claims worth about 18 million USD (approximately 23.7 billion KRW) established to purchase the 'Palm Valley Golf Course' located in Los Angeles (LA), USA.

Previously, the prosecution had seized assets worth about 22.1 billion KRW belonging to CEO Ra and his associates. With this additional seizure, the total frozen assets of CEO Ra and his associates have increased to approximately 45.8 billion KRW.

The prosecution is searching for hidden or overseas assets concealed by CEO Ra and his associates to recover criminal proceeds. On the 13th of last month, they filed a petition for the dissolution of 10 corporations, including Hoan FG, to prevent these corporations from being reused for criminal activities.

CEO Ra and others are accused of manipulating the stock prices of eight listed companies, including Samchully and Dowoo Data, through collusive trading from May 2019 to April of this year, using thousands of billions of KRW raised from investors through profit agreements and other means. The prosecution estimates that they gained approximately 730.5 billion KRW in illicit profits during this process.

They are also charged with attracting discretionary investment clients without registering as financial investment businesses from January 2019 to April of this year, managing CFD accounts on behalf of clients, and obtaining illicit profits worth about 194.4 billion KRW.

The 11 defendants, including CEO Ra, are currently undergoing first trial proceedings at the Seoul Southern District Court. The next hearing is scheduled for 10 a.m. on the 24th.

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