The prosecution, investigating a market manipulation case worth approximately 100 billion won involving financial experts, has launched another forced investigation targeting major securities firms. The Seoul Southern District Prosecutor's Office's Financial and Securities Crime Joint Investigation Unit (Head Prosecutor Shin Dong-hwan) conducted surprise searches of KB Securities, NH Investment & Securities, Kyobo Securities, and others on the 19th on suspicion of violations of the Capital Markets Act.
This case came to light when the Financial Services Commission's Securities and Futures Committee referred 11 related individuals, including wealthy individuals, financial company executives, and small shareholder activists, and 4 corporations to investigative authorities in March. They targeted 'DI Dongil,' which has a small number of shares circulating in the KOSPI market and minimal daily trading volume. Subsequently, they are suspected of artificially manipulating stock prices by concentrating funds from corporations they operate and loans procured from financial companies.
In particular, they are investigated to have pressured DI Dongil executives while claiming to champion 'small shareholder activism' as if they were shareholder activism forces. After inducing the company to enter into trust agreements to purchase its own shares, they used methods to manage stock prices through this and attract general investors. It was found that the purchase orders placed by the suspects during the market manipulation reached one-third of the entire market trading volume.
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https://n.news.naver.com/article/243/0000099397
