Violation of the Capital Markets Act... 25-Year Prison Sentence in First Trial
Ra Deokyeon's Side: "Owes 8 Billion Won Due to Stock Crash"
On July 16, bail was granted to Ra Deokyeon, the head of an investment advisory firm who has been identified as the main culprit behind the stock crash triggered by Societe Generale (SG) Securities. As a result, Ra will now be able to stand trial in the appeals court without being detained.
The Seoul High Court Criminal Division 3 (Presiding Judge Lee Seunghan) on July 16 accepted the bail request for Ra and others, who had been sentenced to prison and taken into custody in the first trial for violating the Capital Markets Act. Bail is a procedure that releases a detainee from custody upon payment of a deposit or fulfillment of other appropriate conditions.
Ra was indicted and detained in May 2023 on charges of manipulating the share prices of eight listed companies by pre-setting buy and sell prices and then selling off large volumes of shares between May 2019 and April 2023, making approximately 737.7 billion won in profits. This was the largest stock price manipulation case ever uncovered in Korea.
He also faces charges of receiving about 194.4 billion won in commissions by managing investments without registering with financial authorities from January 2019 to April 2023, as well as hiding the same amount of commissions in accounts under borrowed names.
At the bail hearing held on July 15, Ra's defense attorney argued, "There are multiple aspects of this case that are in dispute," and emphasized the need to fully guarantee the defendant's right to a defense. The attorney added, "Due to the stock crash, Ra currently has only 8 billion won in debt and his assets have been confiscated. The first trial court also considered these factors and allowed the bail to be substituted with a surety bond. We ask the court to take this into account."
The prosecution, however, requested that the court deny bail, stating, "Given the seriousness of the crimes and the defendants' positions and roles, the first trial court imposed severe sentences of between two and 25 years in prison."
Ra was previously released on bail in May last year during the first trial, but was taken back into custody in February this year when the court sentenced him to 25 years in prison. The first trial court also imposed a fine of over 146.5 billion won and an additional forfeiture of 194.4 billion won. Ra has appealed the first trial verdict.
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