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Yu Jun-won, CEO of Ssangyong Group, who is under investigation for allegations of illegal loans, arrives at the Seoul Central District Court in Seocho-gu on June 19, 2020, for a warrant review. (Photo: Yonhap News) |
[Alpha Biz= Paul Lee] Yu Jun-won, CEO of Ssangyong Group, who was indicted on charges of illegal loans and stock price manipulation, has been sentenced to 4 years in prison in the first trial.
On the 18th, the 34th Criminal Division of the Seoul Central District Court (Chief Judge Han Seong-jin) sentenced Yu to 4 years in prison and imposed a fine of approximately 8.548 billion won for violations of the Capital Markets Act, including fraudulent transactions and the use of undisclosed important information. The court also ordered a confiscation of approximately 122 million won. This verdict comes about 4 years and 6 months after Yu’s indictment in July 2020.
Yu was indicted for providing high-interest secured loans to KOSDAQ-listed companies from April 2015 to December 2018, while falsely reporting that the companies had raised funds through normal convertible bond issues.
He was also charged with using undisclosed M&A information obtained through professional brokers to engage in "day trading" stock transactions for profit. Additionally, from March to May 2019, during the expansion of Ssangyong Group, Yu was accused of repeatedly manipulating stock prices by placing orders to buy back shares of the group’s holding company and artificially inflating the stock price.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
