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FSS Officials questioned about stock price manipulation

Posted November. 28, 2000 19:34,   


The Seoul District Prosecutor¡¯s Office (SDPO), which is investigating the illegal loan scandal involving Jin Seung-Hyun, representative of MCI Korea, questioned related officials of the Financial Supervisory Service (FSS) Tuesday about the alleged stock price manipulation of Regent Securities Co. (formerly Daeyu Regent Securities).

Prosecutors questioned the officials on the background and contents of the FSS request for the SDPO¡¯s investigation into the allegation.

Based on the results of the questioning, the prosecutors will concentrate on determining whether Jin, former Regent Securities president Koh Chang-Gon and James Mellon, chairman of Korea Online (KOL), the holding company of the securities firm, collaborated in the suspected stock price manipulation.

In order to prevent the alleged stock price manipulation from escalating into an international financial scandal, the prosecutors are considering conducting a written interrogation of chairman Mellon, a British national, instead of summoning him.

The prosecutors also found that Shin In-Chul, former president of H&A Investment Bank, and its employees embezzled most of the 2.2 billion won they hoarded secretly by reducing the proceeds from the sale of stocks in the accounting books. In addition, they discovered that Shin received 2 billion won from Jin.

The prosecutors indicted them on charges of embezzlement, a spokesman said.

Lee Soo-Hyung sooh@donga.com