Prosecutors Raid Ssangbangul Group Over Suspected Stock Manipulation

South Korean prosecutors have launched a forced investigation into Ssangbangul Group, raiding its headquarters and affiliate offices on suspicion of stock price manipulation. The Seoul Southern District Prosecutors' Office's financial and securities crime joint investigation division is conducting the searches and seizures at the group's offices in Jung-gu, Seoul.

The investigation stems from a complaint filed in January by the main opposition Democratic Party. The party accused former Ssangbangul Group Chairman Kim Seong-tae and former Vice Chairman Bang Yong-cheol of violating capital markets laws. The Democratic Party alleged that the core issue of the "Ssangbangul North Korea remittance case" was not related to alleged payments for then-Gyeonggi Province Governor Lee Jae-myung's visit to North Korea, but rather to Ssangbangul's stock manipulation schemes.

The Korea Exchange reviewed the allegations and detected signs of unfair trading in numerous stocks. Based on these findings, prosecutors initiated a full-scale investigation. A key focus of the probe is reportedly the alleged stock price manipulation involving Nanoss (now Futurecore), a former affiliate of Ssangbangul. Prosecutors plan to analyze the seized materials to determine the methods used to inflate stock prices and ascertain the involvement of individuals like former chairman Kim.