Hankook’s Cho Hyun-bum Investigated for Stock Manipulation
Korean news sources report that an investigation has begun into allegations of stock manipulation brought against Hankook Tire executive vice president Cho Hyun-bum. According to the Korea Times and Chosun Ilbo news, the son-in-law of South Korean president Lee Myung-bak is being secretly investigated as part of a larger stock market ‘manipulation racket’ that allegedly involves the younger generation of a number of prominent South Korean ‘chaebol’ business families.
The Seoul Central District Prosecutors’ Office is, say the reports, investigating whether Cho influenced a sharp rise in the stock price of companies, from which he made sizeable hit-and-run investments, or attempted to participate in a seasoned equity offering by using confidential information or manipulating the share price. Prosecutors are reported to have said that, since a full investigation has yet to commence, they have not at this time uncovered any illegal activity; they add, however, there are’ suspicious aspects that need to be thoroughly investigated’.