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[Alpha Biz=(Chicago) Reporter Kim Jisun] Prosecutors are speeding up their investigation into former DaouKiwoom Group Chairman Kim Ik-rae, 73, who is suspected of being involved in a plunge in SG securities.
The joint investigation department of financial and securities crimes at the Seoul Southern District Prosecutors' Office raided Korea Securities Finance Co. in Yeouido-dong, Yeongdeungpo-gu, Seoul, on the 23rd and secured related data, including the details of former chairman Kim's loans with Daou Data shares as collateral. Korea Securities Finance is a company that provides stock collateral loans to securities industry customers or manages deposits.
Former Chairman Kim sold 1.4 million Dow Data shares after-hours trading two trading days before the plunge in April to secure 60.5 billion won. He explained that he raised funds to pay gift taxes after allegations were raised that he might have been aware of the 42-year-old group's stock price manipulation before the crash.
Prosecutors are analyzing the money flow around former chairman Kim, mindful of the possibility of the succession of DaouKiwoom Group's management rights behind the mass sale. The DaouKiwoom Group has 100 affiliates, including seven listed companies such as Dow Data and Kiwoom Securities and 93 unlisted companies. Kim has been working on the succession of management rights by donating 2 million shares of Daou Data to his children in 2021.
Ra's group is currently in the first trial on charges of raising about 730.5 billion won in unfair profits by raising stock prices of eight listed companies by setting buying and selling prices in advance from May 2019 to April.
They disguised 194.4 billion won in commission fees from investors as sales of various corporations, including restaurants and galleries, or washed them under borrowed-name accounts before hiding them, the survey showed. They were found to have operated a nationwide "corporate price-control organization," including sales teams, sales teams, customers and corporate management teams, according to the investigation and trial.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
