[Exclusive] Police Launch Internal Investigation into Gangnam Investment Firm That Recommended 'Lower Limit Price' Stocks

Investment Advisory Firm Suspected of Violating Capital Markets Act

The police have launched a pre-indictment investigation into an investment advisory firm in Gangnam in connection with a series of stocks hitting the lower price limit in the stock market.

The Seoul Gangnam Police Station announced on the 25th that it has begun an internal investigation into investment advisory firm A, located in Samseong-dong, Gangnam-gu, Seoul, following eight stocks simultaneously hitting the lower price limit in the stock market the previous day.

Investment advisory firm A is suspected of violating the Capital Markets Act by providing investment advice without registering with the Financial Services Commission.

At around 7 a.m. that day, the police responded to a 112 call reporting "someone is having a dispute." Those present at the scene reportedly stated that they had invested in stocks recommended by investment advisory firm A but suffered losses.

Stocks such as Daol Investment & Securities, Samchully, Seoul Gas, and Harim Holdings plunged by the maximum price limit of 30% the previous day, closing at the lower price limit.

A police official said, "We are currently examining any connections to criminal activity," adding, "We will investigate the exact circumstances of the incident."

This content was produced with the assistance of AI translation services.