Prosecutors Indict 9 Members of Group for Stock Price Manipulation of KOSDAQ Listed Company

by Oh Kuemin

Published 19 Apr.2022 15:04(KST)

Updated 19 Apr.2022 16:30(KST)

Nine People Including Mr. A Acquire Listed Company Without Capital and Boost Stock Price for Capital Gains

[Image source=Yonhap News]

[Asia Economy Reporter Oh Gyumin] The prosecution has indicted a group that acquired KOSDAQ-listed companies without capital, boosted stock prices, and sought speculative profits.

The Seoul Southern District Prosecutors' Office Financial and Securities Crime Investigation Cooperation Team (Head Park Seonghun) on the 19th arrested and indicted A (49), an operator of a merger and acquisition (M&A) related company, on charges of violating the Capital Markets Act. Three others involved in using borrowed-name accounts and funding, as well as five who executed stock price manipulation orders, were indicted without detention.

They are accused of manipulating the stock prices and engaging in stock price manipulation of a total of 2,486,414 shares of KOSDAQ-listed companies A and B from February to December 2018, using methods such as collusive and fictitious trading orders, high-price purchase orders, opening and closing price intervention orders, and phantom purchase orders.

According to the prosecution, they boosted stock prices by up to 665.76%.

Meanwhile, B, a fourth cousin of A who jointly led the crime, is currently at large and efforts are underway to secure his custody.

The prosecution stated, “The companies acquired for the purpose of stock price boosting and speculative profits all faced management difficulties, resulting in trading suspension or delisting, causing damage to many small shareholders. We will strictly respond to offenders who disrupt the capital market order, including those involved in stock price manipulation, as well as those who obstruct judicial order by protecting them.”