DI Dongil, a company listed on the Korea Exchange's main board, extended losses for a second straight day on suspicions it was linked to a stock-rigging case.
As of 9:27 a.m. on the 24th, DI Dongil was trading at 22,750 won, down 2,950 won (11.48%) from the previous session. Early in the session, it fell to 21,500 won, marking a 1-year low.
The previous day, DI Dongil hit the lower limit (the bottom of the daily price band) at the close after it became known as a stock in which wealthy individuals such as a hospital director and a cram school director, together with employees of a financial company, colluded to carry out stock manipulation worth 100 billion won. (☞ [Exclusive] The stock where 100 billion won-class tycoons' stock manipulation occurred was DI Dongil... share price plunges)
DI Dongil, which was trading around 25,000 won early last year, rose to 50,000 won at the end of last year and hovered around 40,000 won into this year. From price moves alone, it was hard to suspect stock manipulation, but authorities detected unusual transactions in the stock. That was because trades repeatedly moved shares from this account to that account, incurring transaction expenses with no economic benefit. Authorities viewed them as trades intended to increase trading volume and investigated whether there was price manipulation. They then identified collusion among the accounts where the transactions were conducted.
The Securities and Futures Commission froze the accounts of suspects involved in manipulating the stock. Financial authorities said the paper gains on shares held in the related accounts amounted to 100 billion won.
In response, DI Dongil said, "The company is a victim of illegal forces' stock manipulation," adding, "We expect the truth of the case to be clearly revealed through a rigorous investigation by the authorities."