The South Korean prosecutors have launched an investigation into Daishin Securities, focusing on a former senior employee who is accused of colluding with stock price manipulation groups to artificially inflate the stock price of a KOSDAQ-listed furniture manufacturing company. The Southern District Prosecutors' Office in Seoul conducted a raid on the headquarters of Daishin Securities to gather evidence related to these allegations, particularly investigating the actions of a senior staff member, identified only as Mr. A, who worked at one of the company's branches.

According to the prosecution, Mr. A is suspected of conspiring with these market manipulation forces from late 2024 to early 2023, engaging in practices that involved repeatedly buying and selling stocks to manipulate prices. The amount of illicit profits gained from these actions is estimated to be in the tens of billions of Korean won. This case has raised serious concerns about regulatory compliance and ethical standards within the securities industry in South Korea, highlighting potential systemic issues.

In response to the allegations, Daishin Securities stated that they became aware of Mr. A's misconduct in June of last year and had initiated an internal audit which led to his referral to the police in August for violations of capital markets law, financial real-name law, and electronic financial transaction law. They emphasized their commitment to zero tolerance for illegal activities and affirmed their cooperation with ongoing investigations.