Prosecutors Request Additional Arrest Warrants for Group Involved in Yeongpung Paper Stock Price Manipulation Allegations

Arrest Warrants Issued for Gang Members Who Aided Fugitive Suspect's Escape

Members of the organization who led the crime related to the 'Youngpoong Paper stock price manipulation suspicion,' where stock prices were artificially manipulated to raise prices and secure profits, are additionally facing detention. The prosecution has also requested arrest warrants for accomplices who helped a wanted organization member evade capture.

[Image source=Yonhap News]

On the 16th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Ha Dong-woo) announced that they had requested arrest warrants for three stock price manipulation organization members, including Mr. A, on charges of violating the Capital Markets Act.

Additionally, arrest warrants were requested for two employees of a law firm and one driver who helped the wanted organization member evade the investigation (charges of aiding a criminal). They were arrested on the 14th. Earlier, on the 3rd, the prosecution had already indicted four stock price manipulation organization members on charges of violating the Capital Markets Act.

They are accused of artificially inflating the stock price of Youngpoong Paper, a KOSPI-listed company, and obtaining approximately 278.9 billion KRW in illicit profits. The prosecution has determined that since October last year, this group manipulated the market a total of 38,875 times using over 110 accounts for 35.97 million shares of Youngpoong Paper stock.

The stock price of Youngpoong Paper, which was 5,829 KRW earlier this year, rose to the 50,000 KRW range by August. However, amid suspicions of market manipulation, trading was suspended after the stock price dropped nearly 30% on the 18th of last month. Trading resumed on the 26th of last month, but the stock price has plummeted, hitting the lower limit for seven consecutive trading days.