Prosecutors Raid Securities Firms in First 'Stock Price Manipulation Ruin Case'

Stock Price Manipulation Worth 100 Billion Won Involving Hospital Directors and Wealthy Individuals

Prosecutors have launched their first compulsory investigation into a stock price manipulation case involving the heads of major hospitals and branch managers of financial institutions, with the total amount involved reaching 100 billion won. This case marks the first investigation by the Joint Response Team for the Eradication of Stock Price Manipulation under the Lee Jaemyung administration.

The Financial and Securities Crime Joint Investigation Unit at the Seoul Southern District Prosecutors' Office (led by Chief Prosecutor Shin Donghwan) announced on May 28 that it is executing search and seizure warrants by dispatching investigators to the headquarters of NH Investment & Securities in Yeongdeungpo-gu, Seoul, and the headquarters of DI Dongil in Gangnam-gu, Seoul. Authorities are securing evidence to determine the flow of funds and collusion among those involved in price manipulation.

Seoul Southern District Prosecutors' Office, Yangcheon-gu, Seoul. Photo by Jiye Lee

Employees of NH Investment & Securities, executives of DI Dongil, and the heads of major hospitals are suspected of mobilizing approximately 100 billion won in corporate funds and loans from financial firms from early 2024, repeatedly using methods such as high-priced and fake purchases to artificially inflate stock prices and lure investors.

The prosecution believes that the amount of profit generated through these price differences amounts to several tens of billions of won. It has been reported that the investigation targets also include well-known private academy operators and wealthy individuals.

The Securities and Futures Commission under the Financial Services Commission filed a complaint with the prosecution in March against 11 individuals and 4 companies for violating the Capital Markets Act (prohibition of price manipulation and unfair trading practices).

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