Exchange Initiates Special Investigation on Korea & Company... Examining Suspected Market Manipulation Charges

The Korea Exchange has initiated a special inspection on Korea & Company, which is currently involved in a management rights dispute. This appears to be aimed at investigating whether there was any market manipulation related to the purchase of shares by Honorary Chairman Cho Yang-rae.

According to the financial investment industry on the 20th, the Exchange's Market Surveillance Committee has begun a special review of Korea & Company by requesting transaction details from KB Securities Samsung-dong Financial Center and Apgujeong Branch, which acted as agents for Honorary Chairman Cho Yang-rae's trades.

Since special reviews by the Exchange are conducted in cases of serious incidents or at the request of the prosecution or financial authorities, this special review is believed to be in response to a request from financial regulators.

Earlier, MBK Partners, a private equity fund conducting a public tender offer for Korea & Company, requested an investigation from the Financial Supervisory Service (FSS), suspecting market manipulation related to the share purchases by Honorary Chairman Cho Yang-rae, who is an ally of current Chairman Cho Hyun-beom. MBK claimed that Honorary Chairman Cho acquired shares at a high price with the purpose of driving the stock price above the tender offer price (20,000 KRW). According to the FSS electronic disclosure, Honorary Chairman Cho purchased a total of 2,583,718 shares of Korea & Company on the open market between the 7th and 14th, with an average purchase price of 22,056 KRW per share.

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