Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] A former employee of Daishin Securities has been arrested on suspicion of participating in a stock price manipulation scheme while working at the brokerage.

According to the legal community on March 5, Judge Kim Ji-hyun of the Seoul Southern District Court issued arrest warrants for the former Daishin Securities department head, identified as A, and an alleged accomplice, B, on charges of violating the Capital Markets and Financial Investment Services Act.

The court said the warrants were granted due to concerns over potential destruction of evidence and risk of flight.

Prosecutors allege that A and others colluded with a group involved in market manipulation to influence the share price of a KOSDAQ-listed company between late 2024 and early last year.

The prosecution launched an investigation after conducting search and seizure operations on Feb. 24 at Daishin Securities’ headquarters in Jung District, Seoul, as well as at A’s residence.

Daishin Securities previously conducted an internal audit and filed a criminal complaint against A, imposing severe disciplinary measures. The former employee left the company late last year, the firm said.

 

 

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