FSS "Edison Motors Fast Track Transferred to Prosecutors... Strict Response to Unfair Trade"

[Asia Economy Reporter Lee Jung-yoon] On the 10th, the Financial Supervisory Service (FSS) announced that it has fast-tracked the transfer of the case regarding Edison Motors' unfair trade allegations, which arose during the failed acquisition of Ssangyong Motor, to the prosecution.

The FSS stated, "On the 22nd of last month, we transferred the unfair trade allegations against Edison Motors and others via fast-track," adding, "However, to maintain investigation confidentiality and protect investors, we are unable to disclose specific details about individual unfair trade investigations."

Fast-track allows the investigative authorities to bypass the review by the Capital Market Investigation Deliberation Committee (CMIDC) under the Financial Services Commission (FSC) and the Securities and Futures Commission (SFC) when urgent action is required, such as during ongoing investigations or when flight or evidence destruction is anticipated, and transfer the case directly to investigative agencies by the decision of the SFC chairman.

The FSS explained, "In cases of significant unfair trade allegations, such as when unclear investment association groups repeatedly engage in illegal activities by moving across multiple listed companies, we plan to concentrate investigative capabilities through cooperation between the Korea Exchange and relevant departments within the FSS to conduct swift investigations," adding, "We will respond strictly and promptly by closely cooperating with the FSC and prosecution, including rapid transfers through fast-track procedures."

Meanwhile, according to the prosecution, the Seoul Southern District Prosecutors' Office Financial Securities Crime Joint Investigation Team conducted a search and seizure on Edison Motors and its affiliates the day before. Edison Motors, which was the preferred bidder for Ssangyong Motor's acquisition last year, ultimately failed to complete the acquisition due to non-payment of the acquisition funds. During this process, allegations arose that the major shareholder artificially inflated the stock price and realized profits. The merger was canceled as Edison Motors failed to pay the remaining acquisition funds. Following this news, Edison EV's stock price hit the lower limit in March, and in May, eight creditors filed for bankruptcy with the court but later withdrew the application.