South Korea's KOSDAQ faces stock‑manipulation prosecution amid market rally

Prosecutors in Seoul have charged a former largest shareholder and CEO (identified as A) and a stock‑manipulation specialist (B) with violating capital market laws after they allegedly acquired control of a KOSDAQ‑listed company without capital and used more than 30 billion won to manipulate its share price. The scheme involved over 32,000 orders between May and July 2017, inflating the stock by about 41.5% and yielding roughly 57 billion won in illicit profit. The investigation also linked A to other zero‑capital M&A activities, while B had a prior conviction for similar offenses.

Meanwhile, the KOSDAQ index rose 0.77% to 786.77 points, buoyed by a strong U.S. market, expectations of eased Middle‑East tensions, and robust performance of AI and semiconductor stocks. Personal investors net‑bought about 2.46 trillion won, supporting the gain, whereas foreign and institutional investors recorded net sales. The Korean Exchange also raised margin requirements for derivatives to curb volatility.