Both Sides Appeal Prison Sentence in First Trial of Former Edison Motors CEO for Stock Manipulation
First Trial Sentences Him to 3 Years in Prison and Fines Him 500 Million Won
The prosecution has appealed the first-instance ruling that sentenced Kang Youngkwon, former CEO of Edison Motors, to imprisonment on charges of manipulating stock prices under the pretext of acquiring SsangYong Motor and thereby obtaining illicit gains worth about 160 billion won.
According to the legal community on the 12th, the Seoul Southern District Prosecutors' Office appealed on the 10th against the first-instance judgment that sentenced former CEO Kang, who had been indicted on charges including violations of the Capital Markets Act, to three years in prison and a fine of 500 million won. It has also been confirmed that former CEO Kang and a man surnamed Cha, who served as an executive at Edison Motors, filed their own appeals on the 9th.
According to the prosecution, from May 2021 to March 2022, former CEO Kang and others were indicted on charges of spreading favorable information about the acquisition of SsangYong Motor and the promotion of an electric vehicle business, artificially driving up the share price of Edison EV, an affiliate of Edison Motors, and then taking illicit gains of about 162.1 billion won.
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Without any basis, former CEO Kang disclosed a 200 billion won funding plan and, by leveraging the recognition he gained through appearances on broadcast programs and other media, falsely claimed in interviews that he had secured about 300 billion won in funds needed for the electric vehicle business. Edison Motors was selected as the preferred bidder for the acquisition of SsangYong Motor in October 2021 and signed a merger and acquisition (M&A) agreement, but the deal fell through after the company failed to raise the acquisition payment.
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