The Case of H&T’s Stock Price Manipulation
Although H&T and the Uzbekistan government signed a MOU for the development of tits silica mine, the actual value of the silica buried under the mine was not so high. The defendant, Jung Gook Gyo, the CEO of H&T distributed false information to investors as if the company had finally obtained the development right of an Uzbek silica mine estimated at more than 10 billion dollars. The spread of this false information caused the investment value of the company to skyrocket. As a result, it was presumed that the fabricated rumor had caused the stock prices of the company to go up more than 2,000% compared to the price at the time of February 27, 2007. While the stock were soaring, the defendant sold shares of H&T in this own account and his borrowed-name account and gained a profit of more than 44 billion won. Accordingly, the defendant was sentenced to 2 years and 6 months of imprisonment. Nearly 1,000 victims of the manipulation filed an action for compensation, totaling close to 60 billion won..