2023-07-25 04:34:44
The Financial Supervisory Service announced on the 25th that it had discovered 40 cases of private placement CB abuse unfair trade investigations and completed investigations into 14 cases.
The related illegal gains are worth regarding 84 billion won, and 33 suspects were transferred to the prosecution.
As a result of the interim investigation into unfair trade, it was confirmed that a large number of those involved in stock price manipulation were involved (62.5%), entering false new businesses claiming to be Corona 19-related themed businesses and successfully attracting investment (80%), causing huge damage to investors such as delisting and designating stocks under management (74.4%).
All departments in the capital market sector of the Financial Supervisory Service will work closely together to promptly investigate unfair trade practices and take stern measures, while strengthening private CB disclosure screening, checking the adequacy of accounting processing, and examining whether financial companies are involved in unfair transactions.
Looking at the background of the planned investigation, privately placed convertible bonds (CB) are easy to issue and disclosure regulations are relatively relaxed, so they can be abused to pretend that large-scale financing and new business investment attraction have been achieved through private CB issuance and disclosure.
In the midst of this, as private CB issuance has recently surged and cases of abuse in unfair transactions continue to occur, the Financial Supervisory Service has promoted a planned investigation into unfair transactions by private CB abuse.
The Financial Supervisory Service analyzed public announcements and stock prices at the time of CB issuance/conversion for listed companies that have recently had frequent private placement CB issuances, and selected 40 cases suspected of unfair transactions as subjects of investigation.
Regarding future plans, the Financial Supervisory Service concentrates its reinforced investigation personnel to conduct and complete private equity CB planning and investigations more quickly, while utilizing a cooperative system in the capital market sector such as disclosure, accounting, and inspection to track unfair trade cartels to the end.
At the same time, it pledged to work closely with the Financial Services Commission to promote institutional improvements so that private CBs can be established as a sound corporate financing method.
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