Korea Zinc accused of involvement in K-pop powerhouse stock manipulation

Korea Zinc, Korea’s leading nonferrous metal manufacturer, had prior knowledge that one of its investment funds would be used to manipulate the stock price of K-pop powerhouse SM Entertainment, according to Youngpoong Group on Friday. The fresh allegation comes amid a prolonged battle as Youngpoong and private equity fund MBK Partners vie with Korea Zinc for control over management of the zinc smelter. Youngpoong claimed that the alleged manipulation highlights Korea Zinc’s lack of internal oversight and ethical standards. Market watchers and legal experts say Korea Zinc could be held criminally liable for violating the law governing capital markets, under which collusion and aiding and abetting in stock manipulation are subject to prosecution. Under the revised law governing the punishment of stock manipulation, penalties can be up to twice the total of illicitly gotten gains and the total of losses evaded. The private equity fund said its claims are backed by internal emails among senior Korea Zinc executives, obtained through court proceedings. According to Youngpoong and MBK, execuWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times