[La Deok-yeon Gate] 'Stock Price Manipulation' La Deok-yeon Earned 264 Billion KRW... Prosecutors "Additional Investigation Planned"

Radukyeon Detained... "Risk of Escape and Evidence Tampering Feared"
Prosecutors Seize Vehicle Worth 500 Million Won

Ra Deok-yeon, CEO of Hoan Investment Consulting (42, male), identified as a key figure in the stock price crash incident triggered by Societe Generale (SG) Securities, was arrested on the 11th.

Yoo Hwan-woo, chief judge in charge of warrants at the Seoul Southern District Court, conducted a pre-arrest suspect interrogation (warrant review) for CEO Ra, who is accused of violating the Capital Markets Act (price manipulation, unregistered investment discretionary business) and the Act on the Aggravated Punishment of Specific Economic Crimes (concealment of criminal proceeds), and subsequently issued an arrest warrant. Judge Yoo stated the reason for issuance as "concerns over flight risk and evidence tampering."

According to the legal community, the prosecution has identified that CEO Ra earned 264 billion KRW through price manipulation and attempted to hide half of it, 132 billion KRW, under the name of commissions.

A prosecution official said, "The profits identified so far are in the 200 billion KRW range," adding, "We need to continue fact-finding through additional investigations." Furthermore, it is reported that the prosecution seized a Rolls-Royce belonging to Ra and his associates. However, the black box of the seized vehicle reportedly did not contain an SD card.

CEO Ra is accused of manipulating stock prices through collusive trading by buying and selling stocks using investors' mobile phones under their names to drive up stock prices. He is also charged with operating an unregistered quasi-investment advisory firm, recruiting investors, and embezzling investment profits and commissions.

Earlier, the Joint Investigation Team on Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office arrested CEO Ra, Byun Mo (40), who oversaw the investment advisory firm, and An Mo (33), a former professional golfer who recruited high-value investors, on the 9th. The detention hearings for Byun and An will be held on the 12th at the Seoul Southern District Court.

※ This SG Securities-led stock price crash incident has sounded an alarm for the order of the capital market. Readers’ reports will be a great help in uncovering the truth. We welcome any reports regarding investment damage cases, suspicions of stock price manipulation and asset concealment by Ra Deok-yeon’s group, and insider details related to the mass sale by major shareholders of Dow Data and Seoul Gas (jebo1@asiae.co.kr). Asia Economy will do its best to establish a transparent capital market order.