[Asia Economy Reporter Yoo Byung-don] The prosecution has requested an arrest warrant for a full-time investor accused of manipulating stock prices of KOSDAQ-listed companies to pocket a profit of 4.6 billion KRW.
On the 28th, the Financial Investigation Division 1 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Lee Seung-hyung) announced that it filed an arrest warrant for full-time investor Kim (39) on the 26th on charges of violating the Capital Markets Act, among others.
Known as the "Super Wanggaemi born in '83," Kim gained attention in stock communities for making large profits by trading a large volume of stocks within a short period. He is suspected of earning approximately 4.6 billion KRW in illegal gains through unfair trading activities in July.
The pre-arrest detention hearing for Kim will be held at 10:30 a.m. on the 28th at the Seoul Southern District Court.
According to the prosecution, Kim and a related party, A, purchased 1,085,248 shares (12.09%) of metal processing company Shinjin SM twice, in June last year and July this year. When the stock price rose, they sold all the shares, reportedly earning a total profit of 1.11964 billion KRW.
Kim is also charged with violating the mandatory "large shareholding report" under the Capital Markets Act, which must be filed when holding a large volume of stocks.
The Capital Markets Act requires that if a shareholder holds 5% or more of voting stocks in a listed company, or if there is a change of 1% or more in the shareholding exceeding 5%, a report must be submitted to the Financial Supervisory Service within five days.
The prosecution is also reportedly investigating whether Kim's purchase of 839,188 shares (approximately 5.25%) of diary manufacturer Yangji Corporation in July involved stock price manipulation.
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