First Case of 'Stock Manipulation Ruin': Suspects Face Arrest Hearing

A pre-arrest interrogation was held this afternoon, July 1, at the Seoul Southern District Court regarding the case dubbed the first instance of 'stock manipulation ruin.'

The four suspects, for whom arrest warrants were requested, entered the courtroom without responding to questions from reporters asking if they admitted to the charges.

[(Do you admit to the charges? (…) Do you have anything to say to the victimized shareholders? (…)]

The four individuals, including a large hospital director, a financial firm branch manager, and an official from DI Dong-il, are accused of raising large-scale funds to manipulate stock prices.

They are suspected of selecting DI Dong-il, a stock with low daily trading volume, as their target and manipulating its market price by mobilizing corporate funds they managed and loans from financial institutions.

Furthermore, they allegedly pressured the management of DI Dong-il by pretending to engage in a minority shareholder movement, forcing the company to enter into a so-called trust agreement to buy back its own shares.

Investigations revealed that they subsequently managed the stock price to prevent it from falling significantly, thereby inducing other investors to continue investing.

It is reported that the group also attempted to manipulate the stock prices of KOSPI-listed companies.

This case came to light in March when the Securities and Futures Commission under the Financial Services Commission filed complaints against 11 individuals—including wealthy figures operating general hospitals and large academies, as well as asset management executives and financial firm branch managers—and four corporations. It drew attention as the first 'stock manipulation ruin' case launched by a joint response team established after President Lee Jae-myung emphasized the eradication of unfair trading practices.

Following a search and seizure of NH Investment & Securities and DI Dong-il in May, the prosecution also conducted raids on KB Securities, NH Investment & Securities, and Kyobo Securities last month.

Whether they will be detained is expected to be decided as early as this evening.

Reported by Kim Minjun | Video by Yang Ji-hoon | Video Editing by Park Na-young | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.