<Anchor>
We will continue our exclusive coverage of the
allegations of stock price manipulation. We delivered a transcript file yesterday (2nd) stating that Chairman Radeok-yeon actually directed the manipulation of the stock price in a briefing session in the past, and even explained how to avoid being caught by the authorities. On the spot, Mr. Ra said that in the future, the stock price of certain stocks would rise, and investors would earn hundreds of billions of won, but these stocks had something in common.

Reporter Yoonha Cho contributed to this report.

<Yoonha Cho>

At an investment briefing in September last year, CEO Ra Duk-yeon boasted that the stock prices of his chosen stocks would skyrocket.

[Representative Ra Deok-yeon: It's just like a nuclear bomb, a nuclear war, it's going to go up, right? All the stocks are going up.]

Investors can confidently say that if they can create their own issues, they can earn up to a few hundred billion won, and that is the time for the final sale.

[Representative Ra Deok-yeon: If you make this an issue in the world, these companies will almost increase their stock prices 10, 20, 30 times. But there will be no gaps that I can do anymore. But everyone here is going to make a few hundred billions, hundreds of billions now. And then that's it.]

The "gap" that Mr. Ra mentioned was the issue of inheritance.

In fact, as a result of the SBS interview, it was identified that among the eight stocks whose stock prices have plummeted this time, seven have major shareholder inheritance issues.

[Representative Radeok-yeon: What is the gap here, the point at which this gap is solved in one shot is when the Inheritance Tax Act is amended.]

Mr. Ra explained that the family of corporate owners who are about to inherit or give away prefer the stock price to be low in order to reduce the related taxes, so they aimed for the fact that the stock price is lower than the actual value.

In the briefing, the target was selected from 300~400 candidate companies, and the age of the major shareholders was mentioned.

[CEO Radeok-yeon: That (the timing of the investment) now depends on the company, for example, the chairman is now in his 70s.]

Explaining his strategy, Ra encourages investors to invest more.

[Representative Ra Deok-yeon: I don't want to do all of this, if I do it in moderation and just blow this up in the world... Everyone here makes tens of billions. You make tens of billions, hundreds of billions. So be as prepared as you can in it.]

(Video Interview: Ha Lung, Video Editor: Yoon Tae-ho, CG: Choi Sky)


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<Anchor>

Many people claim that they entrusted the money to them after this incident, but if they had known in advance that stock price manipulation was taking place, they could be punished as accomplices. According to the transcripts we have obtained, some investors are asking Radeok-yeon if he will ever be on the investigation and when the "price manipulation" will end.

More details Reporter Jeong Jung-hyun contributed to this exclusive report.

<Reporter Jeong Jung-hyun>
Investors who heard Ra Deok-yeon's remarks at the
investment briefing have no qualms about using the word "market manipulation," that is, stock price manipulation.

[Investor A: It's market manipulation itself. The ship is going right now. I'm one with the CEO. You said earlier that you were going to hire a bus and pick it all up.]

The expression 'ride the bus' is a term used in online games, etc., and it means that a low-level user can easily level up to a super-high speed with the help of a high-level user.

It can be said that they are fully aware that their investment returns come from the market manipulation of LA.

There have even been several questions to the effect that market manipulation is easily exposed to investigations.

[Investor B: In my case, I now leave my mobile phone to the CEO, but if you track the IP and location, everything is set up in one office.]

Referring to the CEO explanation that he invests in stocks with inheritance issues,

[Investor C: It is such a structure that we are now aiming for the timing of certain quasi-conglomerates who inherit and now we are making some money together]

and we also ask how long the period of stock price manipulation lasts.

[Investor C: You mentioned earlier that there are 300~400 companies, but I don't think there will be that much. Then look at how long. How many years.]

If you invested even though you knew it was a market manipulation, you could be punished regardless of whether you lost money or not.

[Kim Jung-chul/Lawyer: Even if there is damage, it is a matter after the crime was established, and whether property damage occurred has nothing to do with the establishment of this crime.]

In traditional stock price manipulation, those who used other people's accounts to commit crimes while leaving the funders behind have avoided punishment.

However, in this case, the people who provided the accounts were the investors who provided the funds, and the circumstances under which they were aware of the crime are revealed in detail, and the number of people under investigation is expected to increase significantly.

(Video editing by Kim Jun-hee)


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<Anchor>

The Financial Conduct Authority is investigating a contract for difference that has been blamed for this week's crash. The first subject of the investigation was Kiwoom Securities. As Chairman Ra Duk-yeon just raised, we will also confirm whether Dowkium Chairman Kim Ik-rae was involved in this incident.

Reporter Yu Duk-ki contributed to this report.

<Reporter Yoo Deok-ki>
The
Financial Supervisory Service began an inspection of Kiwoom Securities on the morning of today (3rd).

Derivative CFDs, which trade only for difference without holding shares, can be invested up to 2.5x with a margin of only 40%, and in this case, the concentration of anti-pile trading has increased the decline.

Kiwoom was first examined to see if it was appropriate for Dow Group Chairman Kim Ik-rae to sell his 3% stake in Dow Data two days before the crash.

[Ra Deok-yeon/CEO of Investment Advisory Company (28th of last month): I only have 10 billion won to pay transfer tax (gift tax), but why are you selling 60 billion won here.]

In response to Mr. Ra Deok-yeon's suspicion that Chairman Kim may have lent shares to a third-party short-seller, Chairman Kim's side revealed the block deal transaction statement and said, "The sale date was determined passively according to the schedule of the foreign securities company, which is the organizer of the sale."

Following Kiwoom, the financial authorities will also inspect other brokerage firms with large CFD balances.

We also started to improve the CFD system, which was exposed as a result of this incident.

Improvements include that CFDs are marked as institutional purchases such as foreign companies even if individuals are beneficial owners, that they are similar to credit loans but are excluded when calculating credit limits, and that most investors are individual professional investors.

However, it is pointed out that it is a belated response.

[Chung Chung Jung/Korea Equity Investors Association: In some cases, such as the United States and Hong Kong, individual investors are prohibited from trading CFDs. It is unfortunate that the financial authorities neglected to take (measures) that led to this incident.]

The outline of the CFD improvements is expected to emerge from next week's inquiry by the Political Affairs Committee of the National Assembly.

(Video Interview: Yang Ji-hoon, Video Editing: Jeon Min-kyu)

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<Anchor>
Reporter Cho Yoon-ha is covering
this story.

Q. What is the position of Representative Radeok-yeon?

[Reporter Cho Yoon-ha: I spoke directly with Chairman Ra Deok-yeon yesterday (2nd) and today. Representative Ra says that he will be beaten and punished for what he does wrong. However, I asked him to look at who triggered this crash. I can't blame everything, and this person who caused the stock price to crash must be punished.]

Q. Chairman Kim Ik-rae, behind the stock price crash?

[Reporter Cho Yoon-ha: Yes, that's right. Every time Chairman Ra opens his mouth to the media and when he gives interviews with us, he claims that Chairman Kim Ik-rae is behind the stock price crash. The process of selling all 60.5 billion won worth of Dow Data owned by Chairman Kim at once just before the stock price crash, and this is suspicious, so I ask you to do some investigation. Chairman Kim denied this outright and sued Ra. Now, both men are reportedly the subject of an investigation, so the prosecutor's investigation, And when the results of the FSA's investigation into Kiwoom Securities come out, it will be clear who is right.]

Q. What is the prosecutor's investigation?

[Reporter Cho Yoon-ha: It's going on. Prosecutor General Lee Won-seok today instructed the Seoul Southern District Prosecutor to "thoroughly identify and severely punish those involved in the manipulation of the stock price and the beneficiaries of ill-gotten gains." We haven't heard much news yet, but there is a prospect that the investigation will speed up little by little.]

(Video editing by Yoon Tae-ho)