Key Defendants in Doich Motors Stock Manipulation Case Confirmed Guilty

The core defendants in the "Doich Motors stock manipulation" case, linked to First Lady Kim Gun-hee, were ultimately found guilty by the Supreme Court.

An appeal verdict also deemed Son, who faced charges of participating in stock manipulation in a manner similar to Kim, guilty.

On the 3rd, the Supreme Court's Third Division (Chief Justice Lee Suk-yeon) confirmed the guilty verdicts for nine defendants, including Kwon Oh-soo, former chairman of Doich Motors, who were indicted for violating the Capital Markets Act. The court stated, "There are no misunderstandings regarding the legal principles or omissions in judgment concerning market manipulation," dismissing appeals from both the prosecution and the defendants.

The case unfolded over approximately three years starting from late 2009. The former chairman and others were accused of illegally inflating Doich Motors' stock prices through coordinated trades using numerous borrowed accounts.

All nine defendants were definitively found guilty… Kwon Oh-soo's sentence increased from the first instance to the second instance.

In the first instance, seven of the nine defendants were found guilty, and the appeal resulted in the remaining two also being recognized as guilty, concluding with all being found guilty. Notably, Kwon’s sentence in the first instance was two years in prison with a three-year probation and a fine of 300 million KRW, but in the second instance, the sentence increased to three years in jail, four years probation, and a fine of 500 million KRW.

Son, who was accused of providing accounts for stock manipulation similar to Kim, was acquitted in the first instance but had his case overturned in the appeal when the prosecution added aiding and abetting charges as an alternative accusation. The court sentenced Son to six months in prison with one year of probation.

The appellate court stated, "The trading patterns of Doich Motors stocks are significantly different from those previously observed, and considering the content of text messages exchanged with other defendants, it is recognized that Son aided in the market manipulation." It further pointed out, "Despite knowing about the market manipulation, the defendant provided funds and engaged in stock trading, ultimately causing harm to general investors."

In Kim's case, the prosecution declared last October that there was "no clear evidence that she colluded or knowingly provided accounts for manipulation," resulting in a non-indictment decision. However, the matter is currently under review at the Seoul High Prosecutors’ Office after Choi Kang-wook, a former Democratic Party lawmaker who led the allegations, filed an appeal.

Meanwhile, the Democratic Party claimed the prosecution's investigation into Kim was inadequate, and brought impeachment proceedings against Lee Chang-soo, the Seoul Central District Prosecutor, Deputy Chief Jo Sang-won, and Chief of the Anti-Corruption Division Choi Jae-hoon, but the Constitutional Court dismissed these efforts on the 13th of last month.

Image Source: Kwon Oh-soo, former chairman of Doich Motors, appears at the appeal judgment hearing related to the stock manipulation case at the Seoul High Court in Seocho-gu, Seoul, on September 12 of last year. / News1, archival photo for understanding the article / gettyimagesbank