Shares of affiliates soared, but the acquisition failed… Court “Fear of destroying evidence and fleeing”
Kang Young-kwon, 64, chairman of Edison Motors, who was accused of ‘eating’ in the process of trying to take over Ssangyong Motors, was arrested.
Judge Hong Jin-pyo of the Seoul Southern District Court issued an arrest warrant following interrogating the suspect before the arrest of Chairman Kang on the 7th, saying, “There is a risk of destroying evidence and fleeing.”
Chairman Kang is accused of unfair trade, such as raising the stock price on the good news that he is pushing for the takeover of Ssangyong Motor.
Edison Motors was selected as the preferred bidder for the acquisition of Ssangyong Motors in October last year and signed an M&A contract.
The stock price of Edison EV (now Smart Solutions), which was the company’s financing channel at the time, surged even before the merger and acquisition contract was signed.
In the process, Edison EV’s largest shareholder investment union sold most of its stocks and realized a profit, causing a controversy over ‘eat-out’.
In the end, the merger was canceled because Edison Motors might not pay the balance of the acquisition price.
The prosecution, which took over the case from the Financial Supervisory Service, started a full-scale investigation in August, including a search and seizure of Edison Motors and its affiliates.
On the 4th, arrest warrants were requested for three members of Edison Motors, including Chairman Kang, on charges of violating the Capital Market Act.
Chamo, who was also requested for an arrest warrant, was also arrested.
Another Chamo’s arrest warrant was dismissed on the grounds that “the scope of contribution to the crime is relatively light and there is no risk of destroying evidence as long as the accomplices are arrested.”
Chairman Kang is a former terrestrial broadcast producer who directed KBS’s ‘Entertainment Weekly’ and SBS’s ‘I want to know’.
He appeared in court this morning to receive a substantive review of the warrant, and only said “I have nothing to say” to reporters’ questions such as ‘Do you admit to the charge of violating the Capital Market Act?’
/yunhap news
