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| ▲ This undated image, provided by South Korean electric bus maker Edison Motors Co., shows Chairman Kang Young-kwon. (PHOTO NOT FOR SALE) (Yonhap) |
Edison Motors chief-indictment
Edison Motors chief indicted for profiting from alleged stock price manipulation
By Kim Han-joo
SEOUL, Oct. 25 (Yonhap) -- The chief of South Korean electric bus maker Edison Motors Co. has been indicted on charges of gaining illegal profits from stock trading after the share price of a subsidiary rose during the company's attempt to acquire SsangYong Motors Co., officials said Tuesday.
The Southern District Prosecutors Office said it has indicted Chairman Kang Young-kwon, with physical detention, along with two other executives on charges of violating the Capital Market Act and related laws.
Last October, Edison Motors was picked as a preferred bidder to acquire debt-laden SsangYong Motors, leading to a stock rally of Edison EV, its key affiliate involved in the funding.
A consortium led by Edison signed the takeover deal with SsangYong in January of this year, but Edison has had trouble raising funds for the takeover due largely to the loss-making Edison EV.
The takeover deal eventually fell through in March of this year due to payment failure, resulting in a plunge in the value of Edison EV's stock. In the process, a group Edison EV's large stockholders sold most of their stocks and pocketed the profits.
Prosecutors suspect Kang jacked up his company's stock price by leaking fabricated information on the potential M&A.
Kang, a former renowned TV producer, acquired TGM in 2017 and later changed the company's name to Edison Motors.
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