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[Alpha Biz=(Chicago) Reporter Kim Jisun] The management of a listed foreign company in Korea was accused of manipulating its stock price using borrowed-name accounts.
At the 18th regular meeting on the 23rd, the Securities and Futures Commission of the Financial Services Commission notified the prosecution of those related to the company, including the CEO (foreigner) of a foreign company listed in Korea and the head of Korea's liaison office, on charges of manipulating its own stock prices.
Company A operates through a business subsidiary in its home country, but it is an offshore holding company (SPC) established in the Cayman Islands for listing on the Korean stock market.
They announced their decision to make a paid-in capital increase at a time when Company A's stock price continued to fall from 2017 to 2018, but began to adjust the market price with the aim of smoothing the paid-in capital increase as the stock price fell afterwards.
The head of the Korean liaison office was instructed by the management of company A, opened several securities accounts under the names of himself, his family and acquaintances, delivered them to stock price manipulations, and used them for stock price manipulation.
Most of the market manipulation orders were submitted overseas by stock price manipulation forces, but some were submitted directly by Company A's management. Company A's stock price rose 26.8% during the five months they began to manipulate the market.
They submitted more than 34,000 orders during the issuance price calculation period to maintain the issuance price of new shares in line with the target recruitment amount, and thus exceeded the target recruitment amount.
Among them, the head of the liaison office in Korea of company A is also suspected of evading losses worth 350 million won by disposing of his holdings in advance using information on paid-in capital increase in 2019.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
