ID :
19997
Wed, 09/17/2008 - 15:17
Auther :
Shortlink :
http://m.oananews.org//node/19997
The shortlink copeid
Prosecutors raid listed tech firm in insider trading probe involving Lee's in-law
Lee's in-law
SEOUL, Sept. 17 (Yonhap) -- Prosecutors raided the office of a listed software developer on Wednesday as part of a broadening investigation into allegations of insider trading by several second-generation entrepreneurs, including a son-in-law of President Lee Myung-bak.
The investigators said they have confiscated accounting books and computer hard disks from Codinus, the mobile software developer, on suspicions that its major shareholders illegally influenced the stock market.
Cho Hyun-bum, vice president of Korea's largest tiremaker, Hankook Tire Co., who is married to the South Korean president's third daughter, is known to hold a 5.7 percent stake in the firm. He invested in Codinus last year when the firm's founder, Kim Young-jip, announced a capital increase plan, investigators said. Kim is also a grandson of the founder of Hankook Chinaware Co., a leading
dinnerware manufacturer --not affiliated with Hankook Tire.
Kim's capital increase plan drew investment from several other second-generation entrepreneurs like Na Sung-kyun, CEO of Internet game developer Neowiz and grandson of Anam Group, and Chang Seon-woo, head of an affiliate of Kukdong Oil and Chemical Co. run by his father, Chang Hong-sun.
With news of their investment, Codinus's share price doubled to nearly 20,000 won (US$17.8).
Investigators said the probe is currently focused on Kim rather than the president's in-law, apparently trying to limit premature political ramifications of the probe. But it appears likely that the investigation will soon have to expand to Cho, who is suspected of collaborating with Kim to drive up the share prices.
"At least for now, we are investigating the process of how Mr. Kim took over Codinus," a prosecutor at the Seoul Central District Prosecutors' Office said on condition of anonymity.
The presidential office had called for a thorough investigation, rushing to contain any potentially damaging fallout.
The suspects are the latest figures caught up in the probe of corporate heirs and their relatives, who have long been rumored of using their status to influence the market. Koo Bon-ho, a cousin of LG Group Chairman Koo Bon-moo, is charged with pocketing billions of won by spreading false rumors about his investments.
Park Joong-won, son of a former Doosan Group chairman, is currently facing trial for rigging shares of a nano technology developer.
SEOUL, Sept. 17 (Yonhap) -- Prosecutors raided the office of a listed software developer on Wednesday as part of a broadening investigation into allegations of insider trading by several second-generation entrepreneurs, including a son-in-law of President Lee Myung-bak.
The investigators said they have confiscated accounting books and computer hard disks from Codinus, the mobile software developer, on suspicions that its major shareholders illegally influenced the stock market.
Cho Hyun-bum, vice president of Korea's largest tiremaker, Hankook Tire Co., who is married to the South Korean president's third daughter, is known to hold a 5.7 percent stake in the firm. He invested in Codinus last year when the firm's founder, Kim Young-jip, announced a capital increase plan, investigators said. Kim is also a grandson of the founder of Hankook Chinaware Co., a leading
dinnerware manufacturer --not affiliated with Hankook Tire.
Kim's capital increase plan drew investment from several other second-generation entrepreneurs like Na Sung-kyun, CEO of Internet game developer Neowiz and grandson of Anam Group, and Chang Seon-woo, head of an affiliate of Kukdong Oil and Chemical Co. run by his father, Chang Hong-sun.
With news of their investment, Codinus's share price doubled to nearly 20,000 won (US$17.8).
Investigators said the probe is currently focused on Kim rather than the president's in-law, apparently trying to limit premature political ramifications of the probe. But it appears likely that the investigation will soon have to expand to Cho, who is suspected of collaborating with Kim to drive up the share prices.
"At least for now, we are investigating the process of how Mr. Kim took over Codinus," a prosecutor at the Seoul Central District Prosecutors' Office said on condition of anonymity.
The presidential office had called for a thorough investigation, rushing to contain any potentially damaging fallout.
The suspects are the latest figures caught up in the probe of corporate heirs and their relatives, who have long been rumored of using their status to influence the market. Koo Bon-ho, a cousin of LG Group Chairman Koo Bon-moo, is charged with pocketing billions of won by spreading false rumors about his investments.
Park Joong-won, son of a former Doosan Group chairman, is currently facing trial for rigging shares of a nano technology developer.
