Prosecutors Conduct Search and Seizure of Suspect Involved in Alleged Market Manipulation of Jungang Advanced Materials

Allegations of Violating the Capital Markets Act

The prosecution has conducted a search and seizure operation against suspects accused of manipulating the stock price of Jungang Advanced Materials (formerly Jungang D&M), a secondary battery material company.

Seoul Southern District Prosecutors' Office, Yangcheon-gu, Seoul.
Photo by Daehyun Kim kdh@

The Financial Securities Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Gong Jun-hyeok) announced that from the morning of the 23rd, they have been conducting search and seizure of the residences and mobile phones of Mr. A and others, who are suspected of violating the Capital Markets Act.

Mr. A and others are accused of manipulating the market through more than 11,000 instances of matched orders from November 2022 to October last year. As a result, the stock price, which was around 500 won per share, rose approximately tenfold, and Mr. A and others are believed to have gained illicit profits amounting to about 24 billion won.

It is also reported that they are connected to Quantapia, a KOSDAQ-listed company, which was subjected to a search and seizure by the prosecution on the 2nd for the same charges.