Prosecutors Request Arrest Warrants for 4 Suspected of Manipulating Yeongpung Paper Stock Prices

The prosecution has requested arrest warrants for four individuals suspected of actively manipulating the stock price of Youngpoong Paper, which has been embroiled in allegations of unfair trading.

[Image source=Yonhap News]

The Seoul Southern District Prosecutors' Office's Joint Financial and Securities Crime Investigation Division (Chief Prosecutor Ha Dong-woo) announced on the 19th that it has requested arrest warrants for four people, including Mr. Lee, who were arrested on charges of violating the Capital Markets Act. Mr. Lee and others are accused of artificially inflating Youngpoong Paper's stock price by raising funds for stock price manipulation.

Youngpoong Paper's adjusted stock price, reflecting a bonus issue earlier this year, was 5,829 won but rose to 54,200 won by August. However, the stock price, which was 48,400 won until the 17th, fell by 14,500 won to 33,900 won the previous day. The Financial Services Commission, Financial Supervisory Service, and Korea Exchange suspended trading and requested disclosure inquiries starting that day for two stocks, Youngpoong Paper and Daeyang Metal, whose prices had sharply dropped the previous day.

The prosecution reportedly conducted searches and seizures at the residences of the suspects on the 17th and secured related materials.

However, Youngpoong Paper and its largest shareholder, Daeyang Metal, stated through press releases on the same day that "neither the company nor its affiliates have been subject to searches and seizures" and that "they have not received any notifications from the prosecution or financial authorities regarding allegations of unfair trading."

On the 20th, the Seoul Southern District Court will conduct pre-arrest detention hearings (warrant hearings) at 10:30 a.m. for Mr. Yoon and Mr. Lee, and at 2:00 p.m. for Mr. Shin and Mr. Kim. Judge Kim Ji-sook, in charge of warrants, will preside over the morning session, and Judge Yoo Hwan-woo, also in charge of warrants, will preside over the afternoon session.