Financial Services Commission Appeals Court’s Acceptance of Quasi-Appeal in "No. 1 Ruined by Stock Price Manipulation" Case

The Financial Services Commission has filed an appeal in response to the court’s decision to accept a quasi-appeal submitted by the suspect in the so-called "No. 1 Ruined by Stock Price Manipulation" case.

According to the financial sector on July 30, the Financial Services Commission submitted an appeal to the Seoul Southern District Court on the same day. This action follows Presiding Judge Kim Juseok of the Criminal Division 6 at the Southern District Court, who on July 24 granted a quasi-appeal petition from one of the suspects seeking to exclude from evidence certain materials collected by the Joint Task Force for Eradicating Stock Price Manipulation.

At the time, the suspects argued it was unlawful for employees of the Financial Supervisory Service, who are only authorized to conduct voluntary investigations, to participate in the forensic process for evidence selection. The court found this action to be lawful; however, it reportedly determined that the suspects’ right to defense was not fully guaranteed because the seized items were not returned within the legally mandated period.

Under the Criminal Procedure Act, such an appeal is subject to the jurisdiction of the Supreme Court, and the ongoing investigation is likely to be delayed until the final decision is reached. The case came to light after the Securities and Futures Commission of the Financial Services Commission filed a complaint in March, accusing wealthy individuals operating general hospitals and major private academies—as well as executives at asset management companies and branch managers of financial institutions—of manipulating the stock price of DI Dongil, a company with low daily trading volumes.

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