Prosecutors have launched another round of investigations into a stock manipulation case involving financial experts and over 1 trillion won (approximately $1 billion). On June 19, the Seoul Southern District Prosecutor's Office's Financial and Securities Crime Joint Investigation Team conducted searches at KB Securities, NH Investment & Securities, and Kyobo Securities.
This case came to light after the Financial Services Commission's Securities and Futures Commission reported 11 individuals, including wealthy investors, financial company employees, and minority shareholder activists, along with four corporations, in March.
The suspects are accused of targeting DI Dongil, a company with limited circulating shares and low daily trading volume in the KOSPI market, using corporate funds and loans from financial institutions to manipulate its stock price.
Additionally, they allegedly pressured DI Dongil's management under the guise of minority shareholder activism to enter into trust agreements for acquiring treasury shares, managing the stock price to attract investors. At the time, the volume of buy orders from the suspects accounted for one-third of the total market volume for this stock.
This case has garnered attention as the first major incident under the joint response team established following President Lee Jae-myung's emphasis on eradicating unfair trading practices.
* This article has been translated by AI.
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