[Apha Biz=(Chicago) Reporter Paul Lee] Prosecutors investigating the plunge in stock prices from Societe Generale Securities have launched a massive raid on the homes of former Dow Kiwoom Group Chairman Kim Ik-rae (73), his family members and key employees as well as Kiwoom Securities.

The prosecution, which has completed some investigations into key members of Ra Duk-yeon's stock price manipulation group, seems to have begun to look into allegations of major shareholders' involvement in the plunge in earnest.

According to legal circles on the 28th, the joint investigation department for financial and securities crimes at the Seoul Southern District Prosecutors' Office sent investigators to Kiwoom Securities' headquarters in Kiwoom Finance Square in Yeouido-dong, Yeongdeungpo-gu, Seoul, and Kim's home in Nonhyeon-dong, Gangnam-gu, Seoul, to execute a search warrant.

The raid also reportedly included the Banpo-dong house of Kim Dong-joon (39), CEO of Kiwoom Investment, the eldest son of former chairman Kim, and the residence of employees of Kiwoom Group's strategic management office.

The prosecution was found to have booked former chairman Kim on charges of violating the Capital Markets Act.

Earlier on May 24, the prosecution raided Kiwoom Securities and KB Securities in Yeouido, Yeongdeungpo-gu, Seoul, and secured data on CFD products provided by these securities firms.

The plunge from SG Securities refers to a sudden plunge in eight stocks in April, including Dow Data, Harim Holdings, Daol Investment & Securities, Daesung Holdings, Sunkwang, Samchully, Seoul Gas and Sebang.

CEO Ra Deok-yeon (42), who was put on trial on charges of large-scale manipulation of these stocks, also raised the responsibility for the crash of former chairman Kim and others in media interviews.

 

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