Prosecutors Arrest and Indict Three Members of Yeongpung Paper Stock Manipulation Ring

Seoul Southern District Prosecutors' Office Indicts Yeongpung Paper CEO and Others for Capital Market Act Violations Including Stock Price Manipulation

The prosecution investigating the stock price manipulation allegations involving Youngpoong Paper has additionally indicted the ringleader and a driver who assisted in the escape of the main suspect.

The Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Ha Dong-woo) announced on the 1st that three individuals, including Kim, were arrested and indicted on charges of violating the Capital Markets Act. The driver A, who helped the escape of Lee, identified as the mastermind of the stock price manipulation group, was also arrested and indicted on charges of aiding a fugitive.

[Image source=Yonhap News]

According to the prosecution, Kim and the stock price manipulation group are accused of trading Youngpoong Paper stocks a total of 38,875 times (equivalent to 35.97 million shares) since early this year, gaining an unfair profit of approximately 278.9 billion KRW through market manipulation. As a result, based on the adjusted stock price reflecting a bonus issue, Youngpoong Paper's price, which was 5,829 KRW at the beginning of the year, rose to the 50,000 KRW range by August.

The stock price increase rate from the beginning of the year until the 17th of last month reached about 730%. They believed that concentrating manipulation orders in a few accounts could expose their crime, so they attempted to conceal their actions by using more than 100 different accounts. Earlier, on the 3rd of last month, the prosecution had arrested and indicted four other members of the stock price manipulation group, including another Kim.

The prosecution also requested an arrest warrant for lawyer B, who is suspected of assisting Lee's escape, but the court dismissed it yesterday, stating, "There is room to dispute the criminal charges, and there is no concern of flight or evidence destruction."