[Alpha Biz=(Chicago) Reporter Paul Lee] Regarding the sale of the entire shares of Meritz Securities Co. just before the suspension of trading, Lee Bok-hyun, head of the Financial Supervisory Service, said, "We have done some of the necessary things in accordance with the procedures and we will continue to do so in the future."

"Do you think it is a coincidence that Meritz Securities sold Ewha Electric shares just before trading was suspended, or I think an investigation is necessary," Director Lee said in response to the remarks by Lee Yong-woo, a lawmaker of the Democratic Party of Korea, at a plenary session of the National Assembly's National Policy Committee on the 15th.

Meritz Securities announced that it sold all 58,382,142 shares (32.22%) on the 10th of last month when trading of Ewha Electro-Mechanics' shares was suspended on charges of embezzlement and breach of trust by Ewha Group Chairman Kim Young-joon. Meritz Securities has invested 40 billion won in Ewha Electro-Mechanics' bond (BW) in October 2021 and has been selling it in the market by steadily converting it into stocks. It also disposed of its stake in its affiliate EID to avoid losses.

On the same day, Lee and Kim Joo-hyun, chairman of the Financial Services Commission, also expressed their willingness to prevent the convertible bond (CB) and BW systems from being abused for unfair trade.

 

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