'4 Arrested on Suspicion of Price Manipulation of Yeongpung Paper'

Four individuals suspected of leading the stock price manipulation of Youngpoong Paper, which has been embroiled in allegations of unfair trading, are now at a crossroads regarding detention.

[Image source=Yonhap News]

On the 20th at 10:30 a.m., Judge Kim Ji-sook, in charge of warrants at the Seoul Southern District Court, will hold a pre-arrest interrogation (warrant substantive examination) for Yoon and Lee, who are accused of violating the Capital Markets Act. Around 2 p.m. the same day, Judge Yoo Hwan-woo, also in charge of warrants, will conduct a substantive examination of the warrants for Shin and Kim, who face the same charges. The decision on whether they will be detained is expected to be announced late that afternoon.

They are accused of artificially inflating Youngpoong Paper’s stock price by raising funds for stock price manipulation. Youngpoong Paper’s adjusted stock price, reflecting a free share distribution earlier this year, was 5,829 won, but it rose to 54,200 won by August. However, the stock price, which was 48,400 won as of the 17th, dropped by 14,500 won to 33,900 won the following day. On the 18th, the Financial Services Commission, Financial Supervisory Service, and Korea Exchange suspended trading and requested disclosure inquiries for two stocks, Youngpoong Paper and Daeyang Metal, whose prices had plunged the previous day.

The prosecution reportedly arrested these individuals on the 17th and conducted searches of their residences and other locations to secure related materials. However, Youngpoong Paper and its largest shareholder, Daeyang Metal, stated through press releases that "neither the company nor its affiliates have been subject to any searches" and that "they have not received any notifications from the prosecution or financial authorities regarding allegations of unfair trading."

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