Prosecutors Request Arrest Warrants for 3 Edison Motors Officials in Attempt to Acquire Ssangyong Motor

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] The prosecution has requested pre-arrest warrants for Edison Motors officials amid 'eat-and-run' controversy during the failed acquisition of Ssangyong Motor.

According to the legal community on the 5th, the Joint Investigation Team on Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office filed pre-arrest warrants yesterday against three individuals, including Kang Mo, an official of Edison Motors, on charges including violation of the Capital Markets Act. The pre-trial detention hearing will be held at 10:30 a.m. on the 6th at the Seoul Southern District Court.

Edison Motors was selected as the preferred bidder for the acquisition of Ssangyong Motor in October last year and signed a merger and acquisition (M&A) contract. At that time, Edison EV (now Smart Solutions), the company's funding channel, saw its stock price surge on news of the Ssangyong Motor acquisition attempt. During this process, the major shareholder investment association of Edison EV sold most of its shares and realized profits, sparking an eat-and-run controversy. Ultimately, Edison Motors failed to pay the remaining acquisition funds, and the merger was canceled.

The Financial Supervisory Service detected unfair trading allegations involving Edison Motors and others in July this year and referred the case to the Seoul Southern District Prosecutors' Office as a fast-track (expedited investigation) case. The prosecution launched a full-scale investigation in August, including raids on Edison Motors and related companies.