A full-time investor accused of manipulating stock prices of a Kosdaq-listed company for over three years and reaping approximately 6.2 billion won in ill-gotten gains has been handed over to trial.

The Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (led by Chief Prosecutor Kim Min-gu) announced yesterday (September 17) that it has indicted 35-year-old full-time investor A, who artificially drove up the stock prices of a Kosdaq-listed company, under charges including violations of the Capital Markets Act.

B, a 36-year-old fellow full-time investor and accomplice, was summarily indicted for aiding and abetting violations of the Capital Markets Act.

Investor A is charged with submitting manipulation orders 15,908 times targeting a Kosdaq-listed firm over a period of three years and five months, from January 2020 to May 2023.

During this process, the stock price surged from 11,800 won to 45,800 won, and investigations revealed that A pocketed approximately 6.2 billion won in unfair profits.

The company in question designs and manufactures powder transport systems, such as pipes for carrying coal dust, and was listed on the Kosdaq market in December 2009.

According to prosecutors, A approached 26 individuals—including businesspeople and doctors met through gourmet gatherings featuring fine wine—by promising to share investment returns and raised funds from them.

In addition, A was provided with 47 securities accounts and 6 contract for difference (CFD) accounts, and borrowed approximately 12 billion won from cryptocurrency lenders and private loan sharks.

Through these means, A purchased a total of 340 billion won worth of shares, securing more than 40 percent of the circulating market supply, according to the probe.

Under the Capital Markets Act, if a person holds 5 percent or more of a listed company's shares or if their holding ratio subsequently changes by 1 percent or more, they are required to report it within 5 days. However, A violated this reporting obligation three times.

Later facing the risk of chain forced liquidation due to the excessive use of leverage, A asked friend and fellow full-time investor B to place high-price purchase orders and engage in wash trading.

With B's assistance, A repeatedly submitted a total of 15,908 price manipulation orders to secure 6.2 billion won in illicit profits, while receiving 1.6 billion won as investment agency fees from the fund and account providers.

The total profits generated across all accounts of acquaintances managed by A reached 497 billion won, according to the investigation.

Prosecutors stated that A used the criminal proceeds to live in a luxury villa and spent up to 30 million won per month on credit card bills.

Due to A's crimes, the company's stock price once soared to a peak of 51,100 won, but following a lower-limit price plunge triggered by a securities firm in May 2023, the stock temporarily dropped, prompting sequential forced liquidations.

As a result, the stock price was cut in half from 45,800 won to 22,050 won within four days, during which retail investors suffered massive losses.

The company's stock price has since plummeted to the 6,000-won range.

Prosecutors also noted that although A attempted to destroy evidence by deleting Telegram chat histories and asking account providers to make false statements, evidence was secured through search and seizure warrants, leading to the additional identification of accomplice B who aided the crime.

Prosecutors explained, "This case is an ultra-long-term price manipulation crime utilizing leverage, where the defendant built an image of a 'successful super ant' investor, gathered funds and accounts from people around them, and disguised the scheme as long-term investment in blue-chip stocks."