Prosecutors detected signs that an incumbent police officer leaked investigation-related information to a suspect side in a stock manipulation case and launched a compulsory investigation.

Seoul Gangnam Police Station. /Courtesy of News1

According to legal sources on the 27th, the Seoul Southern District Prosecutors Office Joint Investigation Division on Financial and Securities Crimes (headed by Director General Shin Dong-hwan) is conducting a search and seizure of the Gangnam Police Station in Seoul today.

Prosecutors are said to have confirmed indications that a Head of Team–level officer affiliated with the Gangnam Police Station leaked investigation information externally while examining a KOSDAQ-listed company stock manipulation case. The case is said to involve a former securities company employee, a businessperson, and a person identified as A, known as the husband of a famous influencer and a wealthy asset holder.

A and others were found to have used a matched-order trading method, in which they pre-set buy and sell prices and exchanged shares at an agreed time, to artificially push up the stock price of a KOSDAQ-listed company. In the process, securities firm client accounts and borrowed-name accounts were also reportedly mobilized.

B, a former securities company Director General, and C, a businessperson, who are accused of participating in stock manipulation, were indicted and detained on the 23rd. Prosecutors are continuing to investigate A and other related parties.

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