'Deutsche Motors Stock Manipulation' Kwon Osu First Trial Verdict Today

[Asia Economy Reporter Kim Daehyun] The first trial sentencing hearing for former chairman Kwon Osu, who was indicted for manipulating the stock price of Deutsche Motors, will be held.

At 11 a.m. on the 10th, the Seoul Central District Court Criminal Division 23 (Presiding Judge Jo Byung-gu) will conduct the first trial sentencing hearing for former chairman Kwon and others, who were charged with violating the Capital Markets Act.

Kwon Oh-soo, chairman of Doich Motors, who is suspected of stock manipulation and breach of trust, is attending the pre-arrest hearing at the Seoul District Court in Seocho-gu, Seoul, on November 16, 2021. Photo by Kim Hyun-min kimhyun81@

Former chairman Kwon was indicted in October 2021 on charges of conspiring with 'stock price manipulation players,' the 'Boutique' investment advisory firm, and current and former securities company executives and employees to manipulate the stock price of Deutsche Motors by using 157 accounts under 91 different names from December 2009 to December 2012. Securities company employees and stock price manipulation players were also indicted together.

It was investigated that after Deutsche Motors was listed via a backdoor listing at the end of 2008, the stock price fell, and when investors demanded stock price support, he committed this crime. Through a method of wash trading, the stock price, which was in the high 2000 won range, was found to have risen to 8,000 won.

At the last closing argument hearing, the prosecution requested the court to sentence former chairman Kwon to 8 years in prison and impose a fine of 15 billion won. They also requested a confiscation order of about 8.13 billion won. In his final statement, former chairman Kwon appealed, saying, "As a manager, I widely promoted the company's growth potential, which became the cause and led me to be involved in the crime of stock price manipulation."

Regarding this case, allegations were raised that First Lady Kim Geon-hee played the so-called 'jeonju' role, providing funds for the stock price manipulation, and a related prosecution investigation is also underway. Former chairman Kwon denied in court that he managed Kim's accounts or traded stocks on her behalf.