A media briefing details a recent crackdown on a stock price manipulation scheme at the Seoul Southern District Prosecutor’s Office on Friday. (Yonhap)
South Korean prosecutors on Friday said they have indicted nine individuals for allegations of stock price rigging, the list of which included a former soccer player, the husband of a TV celebrity and a high-ranking official of a securities firm.
Officials of the Seoul Southern District Prosecutor’s Office held a briefing on the recent crackdown against the supposed 10-member crime ring, in which they arrested three, indicted six without physical attention and put the remaining member on the wanted list.
The suspects are accused of manipulating stock prices of Kosdaq-listed companies worth at least 28.9 billion won ($19.7 million) through borrowed-named accounts between December 2024 and April 2025. They are believed to have pocketed at least 1.4 billion won in profit.
It was found that several well-known individuals — either among the public or in the financial world — were involved.
It is believed that the scam was mapped out by a known corporate raider, who claimed to have inspired the 2009 movie “The Scam,” and a securities firm executive. A wealthy man who married a local TV celebrity and other “players” took part to provide the funding of 3 billion won, borrowed-name accounts and burner phones, in exchange for a share in the profits.
A former soccer player in Korea’s top-division K League 1 was brought in to aid the stock rigging.
Their scheme inflated a stock price from 1,926 won a share to 4,105 won in a month, with the goal to raise the price to at least 7,000 won. The crime came to light when one of the suspects came forward to police. Officials did not reveal the identity of that person.
The prosecution said their profits stopped at 1.4 billion won because one of the accomplices betrayed them in the process, selling a massive amount of shares and fleeing the country.
Officials plan to seize not only the illegal profits, but also the initial 3 billion won used to manipulate the stock price.
minsikyoon@heraldcorp.com