Order to Dissolve 5 Corporations of Ra Deok-yeon in 'SG Incident'... Two Months After Filing
Order to Dissolve 5 of 10 Corporations Requested by Prosecution
The key figure in the 'SG Securities Stock Price Crash Incident,' CEO Ra Deok-yeon Hoan (42), had five of the ten corporations he used for market manipulation and money laundering purposes ordered to dissolve by the prosecution just two months after the dissolution order request was filed.
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According to the legal community on the 15th, the court ordered the dissolution of five of the ten corporations, including Hoan FG, for which the Seoul Southern District Prosecutors' Office filed a dissolution order request in July against CEO Ra and his associates. The hearings on the dissolution order requests are conducted at the courts with jurisdiction over the locations of each corporation. Hearings for the remaining corporations are ongoing. It is also reported that some of the corporations subject to the dissolution order request submitted opinions claiming the prosecution's request was unjust.
The dissolution order for corporations is stipulated in Article 176 of the Commercial Act. The court may order the dissolution of a company upon request by interested parties or prosecutors, or ex officio, if there are grounds. The conditions are: ▲ when the company's establishment purpose is illegal ▲ when the company does not commence business within one year of establishment without justifiable reason or suspends business for more than one year ▲ when directors or employees executing company affairs violate laws or articles of incorporation in a way that makes the company's continuation impossible.
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On July 13, the prosecution reviewed and then filed dissolution order requests for CEO Ra's corporations on grounds including ▲ establishing and operating corporations to conceal crimes such as collusive trading and to launder criminal proceeds (illegal establishment purpose) ▲ creating false sales to disguise acquisition of criminal proceeds and conducting no other business (business suspension for over one year) ▲ cases where the corporation's CEO or executives were accomplices (violation of laws or articles of incorporation by corporate executives).
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