A force that acquired a KOSDAQ-listed company and made unjust profits of hundreds of millions of won through false and exaggerated new businesses has been reported to the prosecution.
The Financial Services Commission's Securities and Futures Commission noted on the 9th that it identified unfair trading forces' illicit trading activities during the third regular meeting last month and decided to report them to the prosecution for violations of the Capital Markets Act and impose a penalty surcharge.
According to the Securities and Futures Commission, they mobilized investment associations to acquire listed companies, artificially inflated stock prices by promoting thematic businesses such as electric vehicles and aerospace projects, and then sold at high prices to reap unjust profits of hundreds of millions of won.
They also disguised themselves as successful in raising funds by signing false memorandums of understanding (MOU) to make it seem like new projects were actually underway, or by issuing private convertible bonds (CB) and bonds with warrants (BW).
Financial authorities said, "The unfair trading forces combined the appearance of large-scale fundraising with the announcement of new projects and the issuance of private CBs and BWs to artificially boost stock prices, which was evident in this case," urging investors to exercise caution.
They added, "When a corporation announces entry into a new business unrelated to its main operations, it is important to verify whether the corporation has the capacity to pursue the business and whether there is investment and research and development."