The Seoul Southern District Prosecutors’ Office announced on the 8th that three ringleaders have been arrested and indicted on charges including violations of the Capital Markets Act and the Act on Real Name Financial Transactions. Six other accomplices were reportedly indicted without detention or through summary proceedings.
The group is accused of manipulating the stock prices of a KOSDAQ-listed company by trading over 28.9 billion won through borrowed-name accounts from December 2024 to April of the following year, securing illegal profits of at least 1.4 billion won.
According to prosecutors, the ringleader, a man in his 50s referred to as “A,” is a stock manipulation expert who recruited people to provide approximately 3 billion won in cash, borrowed-name accounts, and burner phones. He reportedly used a method called “pumping,” which involves spreading false positive news to drive up prices.
Prosecutors believe that the involvement of another man in his 50s, “B,” who was a manager-level employee at Daishin Securities at the time, gave other accomplices confidence in the success of the crime.
Among them, Mr. Lee is understood to have provided the principal funds and goods. Mr. Lee reportedly signed an agreement with A to split the profits 50/50 and aim for a stock price of over 7,000 won. Additionally, Mr. Lee has been indicted on separate bribery charges.
Meanwhile, the Seoul Southern District Prosecutors’ Office summoned Yang Jung-won as a witness on April 30 regarding the allegations of stock manipulation and the attempt to suppress the investigation involving Mr. Lee.
Prosecutors reportedly detected that Yang Jung-won also traded the stocks in question while investigating Mr. Lee’s manipulation of the KOSDAQ-listed company. They are said to have questioned her on whether she was aware of her husband’s stock manipulation and whether Mr. Lee provided entertainment to police officers regarding the investigation into her.
Prosecutors arrested Mr. Lee on suspicion that he provided money and entertainment to Inspector Song, then a team leader at the Gangnam Police Station’s Investigation Division 1, to suppress an investigation into fraud charges filed against Yang Jung-won.
Previously, on April 29, Yang Jung-won was investigated as a suspect at the Seoul Gangnam Police Station for nearly seven hours before returning home around 7:17 PM. At the time, she stated, “I will cooperate sincerely with the investigation,” and “I will make sure the unfair parts are revealed. I hope the truth comes to light.”
Yang Jung-won married Mr. Lee in May 2023 and gave birth to a son in December of the same year.
