Former Deutsch Motors head gets suspended prison term for stock manipulation

Kwon Oh-soo, the former head of Deutsch Motors, leaves the Seoul Central District Court in southern Seoul Friday. [YONHAP]

The former head of Deutsch Motors, a BMW car dealer in Korea, was convicted and given a suspended prison term on Friday for manipulating the company's stock prices.

The Seoul Central District Court sentenced Kwon Oh-soo two years in prison, suspended for three years, for violating the Capital Markets Act.

Kwon was indicted on charges of leaking insider information to induce purchases of the company's stocks between December 2009 and December 2012. In the process, Kwon conspired with influential market players and contacted stock companies and analysts to stir up market buzz around the company and promote purchases.

The court also ordered Kwon to pay a fine of 300 million won ($237,700).

The court acknowledged Kwon and his accomplice had manipulated the market but failed to gain profits in the process.

The ruling comes amid controversies surrounding first lady Kim Keon Hee over her alleged involvement in the case.

The main opposition Democratic Party has long accused Kim of being one of the market players in the case and has proposed a special counsel probe.

The office of President Yoon Suk Yeol, meanwhile, has denied the allegations.

Yonhap

Yonhap