Securities Firm Manager Suspected of Stock-Price Rigging...Prosecutors Raid Daishin Securities

Suspected Collusion with Stock-Price Manipulation Ring

Prosecutors have launched a compulsory investigation after detecting suspicions that an executive at a securities firm colluded with a stock-price manipulation ring to rig the share price of a KOSDAQ-listed company.

Daishin Securities headquarters in Jung-gu, Seoul. Photo by Yonhap News

On the morning of the 24th, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors' Office began conducting a search and seizure at the headquarters of Daishin Securities and other locations where Mr. A, who is suspected of violating the Capital Markets Act, had worked.

Mr. A is reportedly suspected of having taken part in manipulating the share price of Company B, which is listed on KOSDAQ, in collusion with a stock-price manipulation ring in early last year, when he was working as a department-level employee at a branch of Daishin Securities.

Daishin Securities also became aware of these facts last year and, after conducting an internal audit, filed a complaint against Mr. A with the Seoul Namdaemun Police Station on charges of violating the Capital Markets Act, the Real Name Financial Transactions Act, and the Electronic Financial Transactions Act. Mr. A was dismissed around the end of the year.

A Daishin Securities representative said, "We are faithfully cooperating with the relevant investigation."