Ra Deok-yeon 9.1 Billion Won, Sales Team Head Mr. Park 10 Billion Won
Preparing to Freeze Overseas Assets... "Expecting a Long Time"
The prosecution investigating the 'SG Securities-led stock price crash incident' announced that it has secured a total of approximately 20 billion KRW in criminal proceeds from the group led by CEO Ra Deok-yeon Hoan (42). The seizure of criminal proceeds and the investigation of accomplices are ongoing even after the indictment of the three main perpetrators. The prosecution is also investigating various possibilities to determine the cause of the stock price crash.
On the 7th, a representative from the Seoul Southern District Prosecutors' Office told reporters that they had secured 20.5 billion KRW in criminal proceeds from Ra and his stock manipulation group. This amount is an additional 5.3 billion KRW from the 15.2 billion KRW previously secured on the 23rd of last month. Of the 20.5 billion KRW secured, approximately 9.1 billion KRW belongs to CEO Ra, and about 10 billion KRW belongs to Park (37), who oversees the stock trading team. A prosecution official stated, "We have also seized assets managed by Jang (35), who oversees the criminal proceeds, and property belonging to CEO Ra's mother." Resorts and archery equipment manufacturing companies owned by Ra and his group have also been frozen.
The prosecution is preparing to take seizure and preservation measures on overseas assets such as golf courses owned by Ra's group, but it expects that securing these assets will take more time. This is because even if a Korean court issues a seizure and preservation order, cooperation from foreign judicial authorities is required. A prosecution official explained, "Regarding overseas assets, foreign courts must also recognize the validity of the Korean court's seizure and preservation order to properly evaluate the assets. We believe that various evidence will be needed to proceed with these procedures abroad, so we are preparing accordingly."
The prosecution plans to keep various possibilities open in investigating the causes of the stock price crash in the 'SG Securities-led stock price crash incident.' While determining the cause of the stock price rise is not difficult given the circumstantial evidence of Ra Deok-yeon's group's 'collusive trading,' experts have offered multiple analyses regarding the stock price crash. A prosecution official stated that they are considering various scenarios, including the forced sale mechanism of securities firms that opened Contracts for Difference (CFD) accounts, and rapid sales triggered by large investors obtaining information quickly.
Regarding Park, Jang, and Cho (41), who was responsible for investment attraction and customer management and were detained on the 26th of last month, the prosecution said that arrest warrants were requested considering their key roles in the stock manipulation group. They also said they will investigate whether any investors are implicated. A prosecution official explained, "Depending on the case, we will broadly examine whether investors who recommended investments received corresponding benefits and to what extent they were involved, to see if there are investors whose guilt can be recognized." Although no investigation has been conducted on singer Lim Chang-jung, who is controversial as to whether he is an accomplice or a victim, the prosecution added that they will make a value judgment considering the dual nature of Lim as an investor.
Meanwhile, the prosecution revealed that during the investigation of independent lawmaker Kim Nam-guk, who has been at the center of controversy for holding large amounts of cryptocurrency, a warrant was also issued for his bank accounts. A prosecution official said, "A warrant for virtual assets alone does not allow us to understand the transaction flow, etc. The bank account warrant was executed almost simultaneously with the virtual asset warrant." The prosecution conducted raids on cryptocurrency exchanges Bithumb and Upbit on the 15th of last month and secured Kim's transaction records.
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