Two more suspects arrested in massive stock manipulation case

SEOUL, May 12 (Yonhap) -- Two close aides of the head of an investment consulting firm were arrested Friday for allegedly recruiting investors in a large-scale stock manipulation case that has rocked the local financial markets.

The Seoul Southern District Court issued the arrest warrants for the suspects, surnamed Byun and An, citing the risk of them destroying evidence and fleeing.

They are close confidantes of Ra Deok-yeon, head of an unregistered investment consulting firm, who was arrested the previous day.

Ra's firm was at the center of the recent collapse of the stock prices of nine companies, including energy firm Samchully Co. and Seoul City Gas Co.

Byun and An are accused of having raising the stock prices of the companies through an "order matching" technique after taking over mobile phones and personal information from investors.

The stocks of the nine listed companies had steadily risen for years before nose-diving late last month following mass sell-offs through SG Securities Korea Co., the local branch of the Societe Generale Group of France.

About 1,000 investors are said to have suffered huge losses estimated to be between 800 billion won (US$606 million) and 1 trillion won.

(END)