發布日期:2023-01-26 04:18:59
Edison Motors Chairman Kang Young-kwon arrives at the Seoul Southern District, Oct. 7. Newsis
The chief of Korean electric bus maker Edison Motors 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, 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 MA.
Kang, a former renowned TV producer, acquired TGM in 2017 and later changed the company's name to Edison Motors. (Yonhap)