Prosecution raids Daishin Securities over alleged stock price manipulation involving former manager

The prosecution service has launched a compulsory investigation into a former department head at a securities firm who is suspected of conspiring with a price-rigging group to manipulate stock prices.
According to reporting by The Financial News on the 24th, the Seoul Southern District Prosecutors’ Office Joint Financial and Securities Crime Investigation Unit has been conducting searches and seizures since this morning at Daishin Securities’ headquarters in Jung District, Seoul, as well as at the home and other locations linked to a former manager, identified only by the initial A.
A is believed to have colluded with a price-rigging group early last year to manipulate the share price of Company B, a furniture manufacturer listed on KOSDAQ. At the time, B’s stock traded in the 1,000 won range, but after the alleged price manipulation, it surged into the 4,000 won range. The prosecution service is said to estimate the resulting illicit gains at several billions of won.
After conducting its own internal audit in June last year, Daishin Securities filed a complaint against A in August with the Seoul Namdaemun Police Station, accusing him of violating the Financial Investment Services and Capital Markets Act, the Act on Real Name Financial Transactions and Confidentiality, and the Electronic Financial Transactions Act, and dismissed him from his position.
psh@fnnews.com Park Sung-hyun Reporter