'Two Former Securities Firm Executives, Including One, Detained on Warrants for 11 Billion Won Profit from Stock Price Manipulation'

Pretrial Hearing at 3 PM on the 26th

The police investigating the stock price manipulation case involving SFC have applied for arrest warrants for a former securities firm executive and an individual identified as the actual owner of a listed company.

The Serious Crime Investigation Division of the National Police Agency announced on the 26th that they have applied for arrest warrants for Mr. A, a former director of Eugene Investment & Securities, and Mr. B, the actual owner of the energy company SFC, both suspected of violating the Capital Markets Act.

According to the police, they are suspected of spreading favorable information between 2017 and 2018 to inflate SFC's stock price and gain illicit profits.

In early 2018, rumors spread that an overseas bio company invested in by SFC would be listed on NASDAQ, causing SFC's stock price, which was around 2,000 won at the time, to soar about fourfold within two months.

However, the NASDAQ listing of the invested bio company did not materialize, and SFC was delisted in 2020 due to a refusal of audit opinion.

Police investigations revealed that at least five accomplices conspired with Mr. A, and the total illicit profits gained from selling the stocks they held amounted to approximately 11 billion won.

After obtaining intelligence and launching an investigation, the police conducted a search and seizure of the office within Eugene Investment & Securities where Mr. A worked in May last year, followed by summoning and questioning related individuals. During this process, Mr. C, a former executive director of Eugene Investment & Securities and Mr. A's direct superior, was also booked on the same charges.

The pre-arrest detention hearing for Mr. A and Mr. B will be held at 3 p.m. today at the Seoul Southern District Court.

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