Korea Investment & Securities headquarters. Photo = Korea Investment & Securities provided

 

[Alpha Biz=(Chicago) Reporter Paul Lee] The Financial Supervisory Service has launched a search and seizure of Korea Investment & Securities Co. over the Fadu controversy. Following NH Investment & Securities last week, Korea Investment & Securities, a joint organizer, could not avoid the investigation.

According to the 28th financial investment industry, the Financial Supervisory Service raided the headquarters of Korea Investment & Securities Co., which was co-chaired at the time of the listing of Fadu.

Fadu is suspected of failing to deliver proper performance information to investors at the time of its initial public offering due to a sharp drop in sales shortly after its listing in November last year. The third quarter sales announced by Fadu at the time were 321 million won and operating loss of 14.8 billion won. Although it launched the IPO with a market capitalization of KRW 1 trillion, its stock price plunged due to the fact that its sales were around KRW 300 million.

Since then, the FSS has launched a related investigation. On the 19th, the company raided NH Investment & Securities Co., the listing organizer, and even the Korea Investment & Securities Co., the joint organizer, raided to expand the scope of the investigation. Fadu shareholders have filed a class action lawsuit against the company, NH Investment & Securities, and Korea Investment & Securities.

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