Prosecutors Indict and Detain Suspects in Deutsche Motors Stock Manipulation Case Involving Kim Geon-hee

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The prosecution has indicted individuals involved in the Deutsche Motors stock manipulation case, in which Kim Gun-hee, the wife of former Prosecutor General Yoon Seok-yeol, is suspected of being involved.

According to the prosecution on the 26th, the Anti-Corruption and Strong Investigation Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Jo Ju-yeon) arrested and indicted two people, Lee and Kim, on charges of violating the Capital Markets and Financial Investment Business Act.

They are accused of participating in stock manipulation led by Kwon Oh-soo, chairman of Deutsche Motors, from 2010 to 2011. They are known to have played the so-called 'player' role. Kim is also suspected of purchasing convertible bonds of Deutsche Financial, a subsidiary of Deutsche Motors, at prices lower than the market price between 2012 and 2013.

The prosecution is investigating after receiving a complaint that Kim Gun-hee acted as the so-called 'jeonju' (financier) who provided funds in this stock manipulation.

Additionally, during the investigation, the prosecution confirmed signs of embezzlement and breach of trust by Chairman Kwon's family and conducted searches on the 13th at the office, warehouse, and residence of Ahn, the chairman's wife. The prosecution also summoned Ahn for questioning on the same day.