Mastermind of Youngpoong Paper Stock Manipulation Sentenced to 15 Years in Prison in 1st Trial… Fined 397.3 Billion Won

The mastermind behind the "Youngpoong Paper stock manipulation" case, considered the largest single-stock stock manipulation scheme in history, has been sentenced to 15 years in prison in the first trial.

The 12th Criminal Division of the Seoul Southern District Court (Presiding Judge Park Jong-yol) sentenced a man identified by his surname Lee, who was indicted on charges including violations of the Capital Markets Act, to 15 years in prison and a fine of 397.3 billion won today (September 30).

The court also ordered the confiscation of approximately 132.4 billion won from Lee, along with an order for provisional payment equivalent to the amounts of the fine and confiscation.

Lee was brought to trial on charges of conspiring with accomplices to manipulate the market price of Youngpoong Paper shares on a massive scale using 444 accounts from October 25, 2022, to October 17, 2023, thereby securing approximately 789.8 billion won in ill-gotten gains.

He is also facing charges of smuggling himself out of the country without meeting departure requirements in January of the year before last.

However, the court excluded certain evidence on the grounds that part of the illegal profits was based on materials acquired without a warrant, accepting only about 132.4 billion won as illegal profits.

Furthermore, the court determined that Lee played a pivotal role in planning and leading the overall market manipulation, recruiting personnel, dividing roles, and continuously managing and overseeing accounts and funds.

His attempt to smuggle himself out of the country during the investigation was also taken into account as an unfavorable factor.

The court stated, "The market distortion was severe, with stock prices soaring up to 14-fold within a year, which undermined investor trust," adding that strict punishment was necessary.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.