Broker Gets 3-Month Bar On Trading

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Broker Gets 3-Month Bar On Trading

Seoul slapped Regent Securities Co. on Friday with a three-month securities trading suspension because of the firm's alleged involvement in stock manipulation by its holding company last year.

In addition, the Financial Supervisory Ser-vice reprimanded Koh Chang-gon, former head of the firm, now in police custody, and seven other company executives for their roles in the price rigging.

According to the commission, Regent Securities lent 28 billion won ($22.4 million) of call loans to ailing Emerging Venture Capital Co. It lost all the money when the venture capital firm went bankrupt last December. Emerging Venture Capital gave the money to its parent company, MCI Korea, which allegedly used 8 billion won to manipulate Regent's share price.

The agency said Regent also provided illegal financial support to MCI Korea by selling 100,000 shares in Shinsegi Telecom at below-market prices and funneled $10 million to Regent Pacific Group, which set up Hong Kong-based iRegent Group, a holding company for the brokerage firm.

by Kim Hyun-chul

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