Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Prosecutors investigate former Kiwoom chief over alleged stock manipulation
The headquarters of Kiwoom Securities is raided by prosecutors after the brokerage's former chief's was accused of involvement in a stock manipulation scandal, downtown Seoul, Friday. Yonhap
By Lee Yeon-woo
By Lee Yeon-woo
Former Daou Kiwoom Group Chairman Kim Ik-rae expresses his intention to resign during a press conference, at its headquarters in Seoul, May 4. Yonhap
Prosecutors have launched an investigation into allegations that former Daou Kiwoom Group Chairman Kim Ik-rae was involved in a stock manipulation scheme that caused the share prices of eight companies plummeting for no apparent reason in May.
The prosecution on Friday raided the headquarters of Kiwoom Securities and Kim's residence to secure documents related to the suspicious transactions.
Kim is charged with violating the Capital Markets Act.
The investigations were initiated in response to criticism that previous inquiries into Kim had been inadequate, unlike other key figures such as Ra Deok-yeon, combined with the persistent rumors of his involvement in the scandal. Ra, the head of an unregistered investment consulting firm who allegedly orchestrated the manipulation scam, claimed that Kim was the only person who made profits from the shares that plummeted.
Kim has been at the center of controversy after he sold his Daou Data shares worth 60.5 billion won just two trading days before the suspicious mass selling spree of the stock via the France-based Societe Generale. He subsequently resigned as the controversy spread.
Prosecutors will delve into whether Kim's transaction had any impact on the plunge of the eight stocks, and whether he engaged in any illegal activities during the process.
“We will sincerely cooperate with the prosecutor's investigations,” an official from Kiwoom Securities said.