By Kim Tae-jong
The financial authorities are investigating allegations that members of Park Geun-hye’s niece’s family were involved in illegal stock trading using insider information, according to industry sources Monday.
Park is the presidential candidate of the ruling Saenuri Party and believed to be one of the strongest candidates in the presidential election in December.
The investigation began because Park Young-woo, chairman of Dayou Smart Aluminum, and his family members sold a large volume of the company’s stocks a few days before a public announcement that revealed the firm’s poor earnings result in February.
However, in line with common practice regarding confirmation of such investigations, the Financial Supervisory Service declined to confirm whether it has actually launched inquiries into the allegations. The investigation was, however, confirmed by lawmaker Jang Byung-wan of the Democratic Party.
The company’s shares are so-called “politician theme stocks” _ a group of stocks that are believed to be linked to certain presidential candidates and gained massively for no apparent reason.
In fact, its stock prices suddenly soared to almost 4,000 won per share in May, which moved around 1,070 won before last December.
Lawmaker Jang, of the opposition Democratic Party, also raised the allegation that the chairman’s family obtained illegal gains by using non-published information.
He argued that the public earnings announcement was scheduled on Feb. 13, when the firm said it posted 4.6 billion in deficit, turnover from 4.3 billion in profit last year.
But three days before the announcement, the chairman, his wife Han Yoo-jin and their two children sold about 2.2 million stocks worth 3,500 won per share and secured about 8 billion won, Jang said.
“It is so obvious that the chairman’s family obtained illegal gains by using confidential information,” Jang said.
The lawmaker also said the chairman violated the stock trading regulations by falsely reporting the date of stock trading.
On the report to the Korea Exchange, he said that he sold 5.7 billion stocks at a price of 3,515 won per share on Feb. 14, but he reported to the firm’s holding group, Donggang Holdings, that he sold his stock on Feb. 10.
The lawmaker claimed that the chairman had long planned to enjoy huge gains from stock trading, because he bought 2.1 billion stocks at a price around 1,000 won per stock between last August and December before it was categorized as “politician theme stocks.”
After the massive purchase, the stock prices soared drastically because the company was later known to have a connection to Park Geun-hye late last year
The financial authorities are investigating allegations that members of Park Geun-hye’s niece’s family were involved in illegal stock trading using insider information, according to industry sources Monday.
Park is the presidential candidate of the ruling Saenuri Party and believed to be one of the strongest candidates in the presidential election in December.
The investigation began because Park Young-woo, chairman of Dayou Smart Aluminum, and his family members sold a large volume of the company’s stocks a few days before a public announcement that revealed the firm’s poor earnings result in February.
However, in line with common practice regarding confirmation of such investigations, the Financial Supervisory Service declined to confirm whether it has actually launched inquiries into the allegations. The investigation was, however, confirmed by lawmaker Jang Byung-wan of the Democratic Party.
The company’s shares are so-called “politician theme stocks” _ a group of stocks that are believed to be linked to certain presidential candidates and gained massively for no apparent reason.
In fact, its stock prices suddenly soared to almost 4,000 won per share in May, which moved around 1,070 won before last December.
Lawmaker Jang, of the opposition Democratic Party, also raised the allegation that the chairman’s family obtained illegal gains by using non-published information.
He argued that the public earnings announcement was scheduled on Feb. 13, when the firm said it posted 4.6 billion in deficit, turnover from 4.3 billion in profit last year.
But three days before the announcement, the chairman, his wife Han Yoo-jin and their two children sold about 2.2 million stocks worth 3,500 won per share and secured about 8 billion won, Jang said.
“It is so obvious that the chairman’s family obtained illegal gains by using confidential information,” Jang said.
The lawmaker also said the chairman violated the stock trading regulations by falsely reporting the date of stock trading.
On the report to the Korea Exchange, he said that he sold 5.7 billion stocks at a price of 3,515 won per share on Feb. 14, but he reported to the firm’s holding group, Donggang Holdings, that he sold his stock on Feb. 10.
The lawmaker claimed that the chairman had long planned to enjoy huge gains from stock trading, because he bought 2.1 billion stocks at a price around 1,000 won per stock between last August and December before it was categorized as “politician theme stocks.”
After the massive purchase, the stock prices soared drastically because the company was later known to have a connection to Park Geun-hye late last year
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