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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] South Korean prosecutors have launched a compulsory investigation after identifying evidence that a senior employee at a securities firm allegedly participated in stock price manipulation.
According to the financial investment industry on Monday, the Financial and Securities Crime Joint Investigation Division of the Seoul Southern District Prosecutors’ Office conducted search-and-seizure operations starting earlier in the day at the headquarters of Daishin Securities in central Seoul, among other locations.
The investigation reportedly centers on an individual identified only as A, a department head–level employee who previously worked at a Daishin Securities branch in Gyeonggi Province. Prosecutors suspect that A conspired with a price manipulation ring in early last year to rig the share price of Company B, a firm listed on the KOSDAQ.
Daishin Securities is said to have uncovered the alleged misconduct last year and conducted an internal audit before filing a criminal complaint against A in August with the Namdaemun Police Station. The complaint cited violations of the Capital Markets Act, the Financial Real-Name Transactions Act, and the Electronic Financial Transactions Act. A was dismissed from the company toward the end of last year.
Daishin Securities said it is responding to illegal activities under a zero-tolerance policy and will fully cooperate with the authorities’ investigation.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
