'Rhyme Investment Listed Company' Stock Manipulation... Employees of Similar Investment Advisory Firm Deny Some Charges in First Trial

Defense Attorney: "It Was Difficult to Determine Whether the Information Was False"

[Asia Economy Reporter Yoo Byung-don] Employees of a quasi-investment advisory firm, who were indicted for spreading false information to boost the stock price of S-Materials, into which Lime Asset Management fund money was invested, partially denied the charges at their first trial.

At the hearing on charges of violating the Capital Markets Act held on the 4th at the Seoul Southern District Court Criminal Division 11 (Presiding Judge Lee Hwan-seung), the lawyers of quasi-investment advisory firm employees Park and Kim stated, "We deeply regret conducting business beyond the scope permitted by law, receiving money, and disseminating favorable information through internet cafes by improper means."

However, they denied the charge of spreading false information, saying, "It was difficult to know that the information received from the client was false."

Regarding the charge of price manipulation through unfair trading, they explained, "Unfair trading is judged based on the results analyzed by the Korea Exchange, but we were unable to copy the relevant materials," adding, "We will review the materials after viewing them and provide our opinion."

Earlier, Park and Kim were arrested on charges of operating a quasi-investment advisory firm, receiving money, repeatedly posting false articles on various internet stock cafes claiming free capital increases or new business initiatives, and providing false information to paid members of the firm to induce stock purchases.

They are also accused of manipulating prices through unfair methods such as placing high-priced purchase orders.

At the trial, the prosecution explained the reason for the indictment, stating, "Park and Kim, at the request of Vice Chairman Park Mo Lead, acted as brokers for stock price manipulation, spreading false information and manipulating prices to raise the stock price of S-Materials, thereby unlawfully acquiring 1.6 billion won."