The suspected spike in stock prices at Siwon University, a prominent online education company listed on the KOSDAQ, has attracted the attention of law enforcement agencies.
The police have opened an investigation into allegations of stock manipulation related to the company - and worryingly, the management company of actor Kim Soo Hyun, Gold Medalist, is also complicit in the investigation.
According to stock data, Siwon's stock price fluctuated around 1,000 won before soaring in July of the previous 3 years. In just nine months, the stock has skyrocketed to more than 10,000 won. However, the increase did not last long. A wave of sudden stock sell-off caused a sharp decline, bringing prices back to their previous level within two months.
The Financial Intelligence Unit (FIU) under the Financial Services Committee has submitted a report to the police, expressing suspicions of market manipulation. The Korea Stock Exchange (KRX) also marked the stock as unusual for trading.
From there, the authorities identified their accounts and owners as being suspected of being involved in the alleged manipulation. Investigators are currently tracking cash flow to determine whether illegal profits are being generated through the suspected plan.
More than 50% of Siwon University's shares are held by a private investment partnership, and the partnership itself is funded by two other units - one of which is an entertainment company.
That entertainment company is none other than Gold Medalist, the talent management company that represents top actor Kim Soo Hyun. When contacted by KBS for an interview, Gold Medalist denied any wrongdoing, stating, "We have nothing to do with the suspected stock transactions."
As the investigation continues, even financial regulators are closely monitoring developments especially given the celebrities and potential legal consequences involved.
