Joint Task Force Raids KOSDAQ-Listed Medical Device Firm Over 20 Billion Won in Illicit Gains

The Joint Task Force for Eradicating Stock Manipulation is currently conducting a raid on a KOSDAQ-listed company suspected of generating over 20 billion won in illicit gains through complex stock manipulation, including issuing false public disclosures regarding entry into new artificial intelligence (AI) businesses, it was learned on Friday (July 10).

According to financial industry sources, the joint task force began the search and seizure operation this morning at the headquarters of Company A in Pyeongtaek, Gyeonggi Province, as well as at the residences of the company's current and former executives and its largest shareholder.

During the company's leveraged buyout (LBO) using borrowed funds last year, Company A announced that the acquirer would expand into new AI businesses, in addition to its existing medical device and healthcare operations. The company actively promoted these plans, leading to a significant surge in its stock price.

Furthermore, they are suspected of engaging in market manipulation through separate accounts.

They are also accused of filing false disclosures regarding capital procurement; while they publicly stated that the newly raised funds would be invested in the new AI business, the actual use of the funds was different.

It is reported that authorities are currently verifying evidence of collusion between the acquirer and the former management team during this process.

Company A has currently been slated for delisting from the KOSDAQ market due to reasons such as mismanagement, but trading is currently suspended following the company's filing of an objection.
※ Please note: This article was translated by AI and may contain errors.