[Reporter’s Notebook] Between Accomplices and Victims in the 'SG Incident'

On the late afternoon of the 12th, I attended a seminar at a law firm seeking remedies for investors who suffered losses from the 'SG Securities-induced crash.' I visited with the hope of meeting victims, but I could not find a single victim there. It is said that only four people attended the seminar held the previous day.

Investors who suffered losses from the 'SG Securities-induced crash' seem hesitant to even consider seeking remedies, fearing they might be considered accomplices. In the current situation, the only clear cases where victims can assert their losses without hesitation appear to be the 'retail investors' who were deceived by manipulated stock values and acquired stocks that subsequently crashed. Lawyers from other law firms also mention that many clients are afraid of being implicated as accomplices in stock price manipulation, indicating that investors’ concerns are deepening.

The reason they fear being considered accomplices is closely related to the method of crime allegedly used by the group led by CEO Ra Deok-yeon and Hoan, which appears to have involved stock price manipulation. The prosecution believes that CEO Ra’s group raised stock prices through 'matched trading,' using investors’ mobile phones and accounts. Investors who handed over their personal information to CEO Ra’s group with the sole intention of generating profits inevitably face suspicion that they might have been aware of the matched trading used to boost stock prices. Additionally, the fact that illegal discretionary investments were made does not work in their favor.

However, it seems difficult to categorize all of them as accomplices who were aware of CEO Ra’s stock price manipulation solely based on the common factor that they engaged in 'illegal discretionary investments.' The spectrum of investors who suffered losses from the stock price crash is broad, including those who invested through acquaintances showing an 'upward trending graph' without knowing about the manipulation, investors whose CFD accounts were created without their consent, and investors who knew about the price manipulation but did not anticipate the crash and thus suffered losses.

Only a detailed investigation can put an end to the controversy over who is an accomplice and who is a victim. As the prosecution’s investigation continues, the reality of the accomplices seems to be becoming clearer. Before his arrest, CEO Ra claimed, "I am also a victim," but the prosecution has identified evidence that CEO Ra’s group conducted matched trading of stocks worth a total of 47.4 billion KRW using 116 investor accounts. It is also known that witness investigations of high-value investors are underway one after another. We hope that through meticulous investigation, the controversy over who is a victim and who is an accomplice will be resolved as soon as possible. Only then will the true 'victims' have a path to relief.