Prosecutors Arrest Suspect Allegedly Ordering Creation of 'Kim Gun-hee File' in Deutsche Motors Stock Manipulation Case

Prosecutors Secure Files During Investor Advisory Firm Raid... Containing Mrs. Kim's Transaction Records

[Image source=Yonhap News]

[Asia Economy Reporter Heo Kyung-jun] The prosecution has arrested and is investigating an accomplice in the Deutsche Motors price manipulation case on charges of violating the Capital Markets Act.

The Anti-Corruption Investigation Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Young-chul) announced on the 30th that they arrested Mr. A, a former executive of an investment advisory firm who was indicted as the representative director leading the Deutsche Motors stock price manipulation, at Incheon International Airport the previous day.

Mr. A fled to the United States last year while the investigation into Deutsche Motors stock price manipulation was ongoing and was wanted by the prosecution through Interpol. He is suspected of conspiring with the representative of Deutsche Motors to artificially inflate the stock price of Deutsche Motors from December 2009 to December 2012.

The prosecution suspects that Mr. A instructed the preparation of an Excel file listing the number of Deutsche Motors shares traded under the name of Mrs. Kim Geon-hee in the second Deutsche Motors stock price manipulation case that took place after October 2010.

The file was secured from the representative's office computer during a raid on the investment advisory firm in September last year and is known to contain transaction details under Mrs. Kim's name from January 2011.

Earlier, in August this year, the prosecution disclosed this file during the Deutsche Motors stock price manipulation trial and questioned an investment advisory firm employee who directly prepared the file about the circumstances of its creation. Although the employee, who appeared as a witness in court, stated that they did not remember, they testified that "the only people who could have instructed me to prepare it were the company representative and Mr. A."