April 23, 1999
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| April 23, 1999 | atimes.com | |
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| The Koreas Hyundai execs face charges over stock manipulation SEOUL - Chairman Kim Hyung-byuk of Hyundai Heavy Industries and Chairman Park Se-yong of Hyundai Merchant Marine Co. (KSE: 11200) are facing criminal charges of tampering with stock prices. The Financial Supervisory Service (FSS) said Wednesday it filed charges with the prosecution against the two executives for violation of the securities transactions law. This is the first time that affiliates of the country's top conglomerates, or chaebol, are being prosecuted for trying to manipulate stock prices. The two allegedly made massive purchases of stocks in Hyundai Electronics Industry (00660) to illegally hike up their prices. Both face up to 10 years in prison and fines of up to 20 million won ($16,820) if found guilty. The FSS said Hyundai Heavy Industries spent 188 billion won to purchase 8.057 million shares in Hyundai Electronics from May to November last year, a move that helped to raise the stock value of the electronics company to 32,000 won from 14,800 won. The company intentionally bid high for the electronics company's shares over a total of 1,893 times. Hyundai Merchant Marine, in collaboration with Hyundai Heavy, bought 885,000 shares for 12 days from June 18 last year, swaying Hyundai Electronics' share prices between 24,200 won and 29,900 won. Hyundai Merchant Marine applied for purchase orders up to 146 times a day and consigned Hyundai Securities to bid high over 207 times. Two staff members of Hyundai Securities were dismissed or had their salaries cut for carrying out the orders. An employee of Hyundai Electronics was also ordered to hand in full marginal gains of 6.7 million won. (Asia Pulse/Yonhap) | |||||||||
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