Four suspects face court over alleged 100 billion won stock manipulation scheme

Four individuals stand at a critical juncture as they face a court hearing for alleged stock price manipulation, accused of orchestrating a scheme that could lead to widespread financial ruin. The suspects, identified as Kim, Jeong, Shin, and Jang, are suspected of violating capital market laws by raising over 100 billion won (approximately $72 million USD) to artificially inflate the stock price of DI동일 (DI Dongil) through wash trading and cross trading.

The court is set to review the arrest warrants for the four suspects. Upon arriving at the courthouse, the accused remained silent when questioned by reporters about their involvement in the alleged market manipulation, their alleged plans, and any messages for affected shareholders. The DI동일 stock reportedly saw its price double during the manipulation period, with the suspects' buy orders accounting for approximately one-third of the total market trading volume.

This case gained prominence after the Financial Services Commission referred 11 individuals and four related corporations to prosecutors in March for alleged violations of market manipulation and illicit trading prohibitions under the Capital Markets Act. The investigation team, established after President Lee Jae-myung emphasized the need to eradicate unfair trading, has labeled this the first "ruin-inducing stock manipulation" case.

The Seoul Southern District Prosecutors' Office's Financial and Securities Crime Joint Investigation Unit has been actively pursuing the investigation. Following searches of NH Investment & Securities and DI동일 on May 28, the team expanded its scope after uncovering evidence suggesting that employees of NH Investment & Securities had leaked information to the stock manipulation group. This led to additional searches of KB Securities, NH Investment & Securities, and Kyobo Securities.