Investigators from the Seoul Southern District Prosecutors’ Office Financial and Securities Crime Joint Task Force launched extensive search and seizure operations at Daisin Securities headquarters in central Seoul and other sites. The raids target suspicions of executives colluding with stock price manipulation networks to rig markets.
Raid Details Emerge
The operations began early on Feb. 24, focusing on key locations linked to the firm. Authorities aim to uncover evidence of coordinated efforts to artificially influence stock prices using illicit methods.
Former Employee at Center of Probe
A former department manager, identified as Mr. A, previously stationed at a Daisin Securities branch in Gyeonggi Province, faces allegations of participating in the price rigging of Kosdaq-listed company B. Investigators believe A worked with manipulation syndicates early last year, generating illicit gains estimated in the billions of won.
Analysis indicates A sought and received guidance from personnel within company B’s private equity Kosdaq team on optimal fund placements to execute the scheme. Compensation disparities within the industry reportedly fueled the structural vulnerabilities exploited here.
Company’s Prior Actions
Daisin Securities conducted a compliance audit of A in June last year. Following the review, the firm filed a formal complaint against A with the Seoul Namdaemun Police Station in August, citing violations of the Capital Markets Act, the Financial Real-Name Transactions Act, and the Electronic Financial Transactions Act.
Records show A resigned from Daisin Securities shortly after joining, adding to the scrutiny surrounding the firm’s hiring practices and internal oversight.
