Right side: "Kim Geon-hee's account was used for normal transactions... Forced stock manipulation claim"
The prosecution requested the appellate court to sentence former Deutsche Motors Chairman Kwon Oh-soo to 8 years in prison, the same as the first trial, on charges of stock price manipulation involving Deutsche Motors.
At the sentencing hearing for Kwon's violation of the Capital Markets Act, held before the Criminal Division 5 of the Seoul High Court (Presiding Judge Kwon Soon-hyung, Judges Ahn Seung-hoon and Shim Seung-woo), the prosecution demanded 8 years imprisonment and a fine of 15 billion KRW. They also requested the court to confiscate approximately 8.13 billion KRW.
The prosecution stated, "Price manipulation obstructs the fair formation of stock prices and causes unforeseen losses to many innocent investors. The crime was committed in an organized and planned manner over a long period, with the amount involved reaching several billions of KRW, indicating a significant scale."
Former Deutsch Motors Chairman Kwon Oh-soo, accused of involvement in stock price manipulation, is attending the appellate trial's final hearing on charges of violating the Capital Markets and Financial Investment Business Act at the Seoul High Court in Seocho-gu, Seoul on the 2nd. Photo by Jo Yong-jun jun21@
Previously, Kwon was indicted for conspiring with 'stock price manipulation players,' the boutique investment advisory firm, and current and former securities company employees to use 157 accounts under 91 names to artificially raise Deutsche Motors' stock price from December 2009 to December 2012. In the first trial, he was sentenced to 2 years in prison with a 3-year probation and fined 300 million KRW.
In his final argument, Kwon's defense attorney claimed, "This case is simply a forced interpretation of normal investor relations (IR) activities by a listed company representative as stock price manipulation."
The defense also actively refuted the first trial's ruling that a Daishin Securities account under Mrs. Kim's name was used for stock price manipulation. The attorney stated, "Although the prosecution secured a recording during the investigation stage clearly showing that Mrs. Kim personally operated the account by phone orders, they did not submit it, causing the lower court to mistakenly rule that the defendant managed it. Listening to the recording confirms that it was not a collusive trade by conspiracy but a legitimate transaction where a securities company employee entrusted by the account holder decided the specific timing and price of sales."
In his final statement, Chairman Kwon appealed, "I have endured extremely difficult physical and mental times for years, including being detained, due to baseless stock price manipulation allegations. I earnestly ask for a wise judgment to clear my name."
The prosecution also requested the same sentencing as the first trial for other defendants indicted on the same charges. They demanded 5 years imprisonment, a 10 billion KRW fine, and confiscation of approximately 580,000 KRW for Kim, a stock price manipulation player; and 7 years imprisonment, a 10 billion KRW fine, and confiscation of 948.5 million KRW for Lee.
For Son, who was acquitted in the first trial on conspiracy charges but had an additional charge of aiding and abetting in the appellate trial, the prosecution requested 3 years imprisonment and a 5 billion KRW fine, stating, "By purchasing large-scale stocks with a 10 billion KRW loan, he participated in artificially influencing the market price, at least warranting recognition of aiding and abetting."
If the appellate court recognizes Son's aiding and abetting charge, there is a possibility that calls for investigation into Mrs. Kim Geon-hee, wife of President Yoon Suk-yeol, who is suspected to be the 'broker' in this stock manipulation case, will increase. Mrs. Kim was reported in April 2020 for violating the Capital Markets Act, but the prosecution has neither indicted nor dismissed the case after four years.
The appellate court announced, "Considering the numerous issues in this case, the verdict will be delivered on September 12 at 2:10 PM."
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