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[Alpha Biz=(Chicago) Reporter Kim Jisun] Four people have been arrested on charges of manipulating the stock price of Youngpoong Paper.
Kim Ji-sook, a senior judge in charge of warrants at the Seoul Southern District Court, issued an arrest warrant on the 20th, saying, "There is a risk of destruction of evidence and flight" after questioning Lee and Yoon before their arrest (investigation to determine a warrant's validity) on charges of violating the Capital Market Act.
They are accused of artificially raising the stock price of Youngpoong Paper by raising funds for stock price manipulation. Shares of Youngpoong Paper, which stood at 5,829 won earlier this year, soared to 50,000 won in August. From the beginning of the year to the 17th, the stock price growth rate reached 730%.
However, upon opening on the 18th, Youngpoong Paper went straight to the lower limit and closed at 33,900 won. Shares of its parent company, Daeyang Metal, also showed a similar trend. As a result, financial authorities suspended trading of the two stocks shortly after the end of the market on the 18th.
Authorities are said to have detected circumstantial evidence of stock abnormalities in Youngpoong Paper and handed over the case to the prosecution on a fast-track (agenda requiring rapid processing). The prosecution executed arrest warrants for four people a day on the 17th and seized and searched their residences and sought arrest warrants the previous day.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
