Kwon Oh-soo, chairman of Deutsch Motors, who is suspected of stock manipulation and breach of trust, is attending the pre-arrest detention hearing at the Seoul District Court in Seocho-gu, Seoul on the 16th. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Reporter Kim Daehyun] The decision on whether to detain Kwon Osu (63), chairman of Deutsche Motors, who is accused of stock price manipulation and breach of trust, will be made on the 16th. Since suspicions have been raised that Kim Gunhee, wife of Yoon Seok-yeol, the People Power Party's presidential candidate, participated as a 'junju' (broker) in the stock price manipulation process, it is anticipated that if Chairman Kwon is detained, the prosecution's investigation into Ms. Kim could intensify.
Judge Lee Sechang, in charge of warrants at the Seoul Central District Court, began the pre-detention suspect interrogation (detention warrant substantive examination) of Chairman Kwon at 10:30 a.m. that day. Upon arriving at the court, Kwon entered the courtroom without responding to questions such as whether he admits to the stock price manipulation charges or how he plans to explain himself during the warrant hearing. He also remained silent when asked about any interactions with Ms. Kim or whether he was aware of her being mentioned as a 'junju.' The results of Kwon's detention hearing are expected to be announced late that afternoon or early on the 17th.
Previously, Kwon has been accused of leaking internal company information and engaging in stock price manipulation to prevent stock price declines while serving as the largest shareholder or CEO of Deutsche Motors.
Investigations revealed that Kwon mobilized external forces as 'players' to create stronger buying momentum. The prosecution believes that Kwon contacted people from securities firms or investment advisory companies, providing them with various favorable internal information and requesting stock price support or management.
The prosecution's assessment is that from December 2009 for about three years, Kwon and others directly purchased approximately 15.99 million shares of Deutsche Motors stock (worth about 63.6 billion KRW) or induced customers to buy through illegal means.
If Chairman Kwon is detained, it is analyzed that the prosecution's investigation will accelerate, including summoning Ms. Kim for questioning. The investigation initially began after a complaint was filed regarding Ms. Kim's alleged involvement in stock price manipulation. Yoon's camp denies the allegations, stating, "It was only that the transactions were entrusted to Lee and losses were incurred."
Meanwhile, three individuals, including investment company CEO Lee, who are accused of conspiring with Chairman Kwon in stock price manipulation (violations of the Capital Markets Act), were detained and indicted on the 25th of last month and the 5th of this month, respectively, with the first trial scheduled for the 19th. Another individual who acted as a 'player' in the stock price manipulation alongside them disappeared before a detention hearing on the 6th of last month but was recently apprehended and is currently detained at Seoul Detention Center.
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