▲ The logo of Daishin Securities is seen at the brokerage's headquarters in central Seoul. (Yonhap)

brokerage-stock price manipulation

Daishin Securities raided over alleged stock price manipulation: sources

SEOUL, Feb. 24 (Yonhap) -- Prosecutors raided the Seoul office of local brokerage Daishin Securities on Tuesday over suspicions that a company executive may have been involved in a stock price manipulation case, sources said.

The joint investigation team on financial and securities crimes at the Seoul Southern District Prosecutors Office carried out a search-and-seizure operation at the headquarters of Daishin Securities in central Seoul, according to the sources.

A high-ranking official from the brokerage is suspected of having colluded with a price-rigging ring to manipulate the stock price of a company listed on the smaller KOSDAQ early last year, they said.

Daishin Securities said it reported the suspect to the police last year, following an internal audit conducted since June.

The suspect received disciplinary measures from the firm and left the company late last year, the brokerage added.

"We are responding with a zero-tolerance policy toward illegal activities and are fully cooperating with related authorities with regard to the investigation," an official from Daishin Securities said.

President Lee Jae Myung has repeatedly stressed his commitment to rooting out stock price manipulation and other illegal acts that disrupt the financial market.

Earlier this month, a joint task force on stock price manipulation carried out a search and seizure at a local business news outlet on suspicion that five of the outlet's reporters made illegal gains by trading stocks using insider information.

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