Prosecutors Seek Arrest Warrant for Mastermind Behind Yeongpung Paper Stock Manipulation

The prosecution has requested an arrest warrant for Mr. Lee, the mastermind of the stock price manipulation organization involving Yeongpung Paper, a KOSPI-listed company.

[Image source=Yonhap News]

On the 28th, 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 an arrest warrant for Mr. Lee on charges of market manipulation (violation of the Capital Markets Act).

Mr. Lee was caught on the 26th while attempting to stow away on a ship off the coast of Jeju Island. The Southern District Prosecutors' Office formed a capture team with manpower support from the Supreme Prosecutors' Office and had been tracking him for three months.

Mr. Lee and his accomplices are accused of manipulating the stock price of Yeongpung Paper a total of 38,875 times (equivalent to approximately 35.97 million shares) since early last year, gaining illicit profits worth about 278.9 billion won.

The prosecution has so far indicted 11 people, including the stock price manipulation group and accomplices involved in Mr. Lee's escape, on charges of detention and prosecution.