‘Doiche Motors Stock Manipulation’ Jeonju Son Mo Sentenced Guilty in 2nd Trial... Kwon Osu's Sentence Increased

Jeonju Son Mo sentenced to 6 months imprisonment and 1 year probation... "Riding on market manipulation knowingly"

Former Deutsche Motors Chairman Kwon Oh-soo, who was prosecuted for manipulating Deutsche Motors' stock price, received a suspended prison sentence again in the second trial.

In the 'Deutsche Motors Stock Manipulation Suspicion' case, Son Mo, the so-called 'Jeonju' (錢主) whose account was used, is leaving the courtroom after being sentenced to 6 months in prison with a 1-year probation at the second trial sentencing hearing held on the afternoon of the 12th at the Seoul High Court in Seocho-gu, Seoul.
[Photo by Yonhap News]

On the 12th, the Criminal Division 5 of the Seoul High Court (Presiding Judges Kwon Soon-hyung, Ahn Seung-hoon, Shim Seung-woo) overturned the original sentence of 2 years in prison with 3 years probation and a fine of 300 million won against former Chairman Kwon, who was charged with violating the Capital Markets Act, and sentenced him to 3 years in prison with 4 years probation and a fine of 500 million won. The court also ordered 200 hours of community service.

The court stated, “The defendant, as the largest shareholder and representative of a listed company, disregarded social responsibility and ordered and directly participated in stock price manipulation of his own company’s shares,” adding, “It appears that he gained various tangible and intangible benefits from the crime, and especially obtained considerable profits during Deutsche Motors’ initial stable growth and expansion through the price manipulation.” The court further said, “Despite being the mastermind and instigator of the entire crime, he denied all charges and showed no remorse, which is highly condemnable.”

On the same day, the court overturned the original acquittal of Son Mo, who was jointly prosecuted for aiding stock price manipulation, and sentenced him to 6 months in prison with 1 year probation. The court, like the first trial, judged that Son could not be considered a ‘co-principal’ in the second round of price manipulation, but found him partially guilty of ‘aiding’ the manipulation. Earlier, during the appeal process, the prosecution added the charge of aiding stock price manipulation against Son as a subsidiary charge through an indictment amendment.

The court stated, “The defendant, knowing that stock price manipulation was taking place regarding Deutsche Motors’ shares, took advantage of it and artificially created buying pressure, facilitating the price manipulation by other defendants,” adding, “As a result, the stock price was not formed according to normal supply and demand in the securities market, causing damage to innocent general investors.”

Former Chairman Kwon was indicted in October 2021 on charges of manipulating Deutsche Motors’ stock price in collusion with so-called ‘stock price manipulation players,’ boutique investment advisory firms, and current and former securities company employees from 2010 to 2012, after the stock price fell following Deutsche Motors’ backdoor listing.

This case began with an investigation after the Open Democratic Party filed a complaint in April 2020, suspecting that Kim Gun-hee, wife of President Yoon Seok-youl, provided funds as a ‘jeonju’ (financier) in the stock price manipulation process. The prosecution indicted Kwon and others in December 2021 but excluded Kim, stating that the investigation on her was ongoing.

Suspicions involving Kim resurfaced when the first trial court acknowledged that some of Kim’s accounts were used in the stock price manipulation. During the trial, evidence emerged that accounts under Kim’s name were used for stock transactions by Kwon’s group. The first trial recognized three of Kim’s accounts and one account of her mother, Choi Eun-soon, as borrowed or entrusted accounts used in the price manipulation. Kim has been suspected of playing the role of ‘jeonju’ by lending stock accounts during the first and second stages of the crime.

Since Son was found guilty of aiding on this day, public opinion is expected to intensify, demanding judicial action against Kim, who is suspected of acting as a ‘jeonju.’ This is also expected to influence the prosecution’s future investigation results regarding Kim.