The Korea Herald

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Arrest warrant sought for ex-energy ambassador over alleged stock manipulation

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Published : March 6, 2012 - 18:25

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SEOUL, March 6 (Yonhap) -- Prosecutors said Tuesday they filed for a warrant to arrest a former energy ambassador over his suspected role in a stock manipulation scandal related to a diamond mining project in Cameroon.

Prosecutors requested the Seoul Central District Court issue a warrant for Energy and Resources Ambassador Kim Eun-seok, who was dismissed from the post in January due to the scandal, they said.

Kim is suspected of having used his influence as a senior official at the foreign ministry to inflate the stock prices of South Korean mine developer CNK International by exaggerating in a press release the volume of diamond reserves in a Cameroon mine, developed by the KOSDAQ-listed company.

Kim's family and friends are suspected of having reaped big profits after the official announcement in late 2010 boosted CNK shares by more than fivefold in about three weeks.

Charges against Kim include manipulation of the stock market, abuse of power and falsely drawing up official documents, prosecutors said.

The prosecutors' latest move came after they questioned in late February former Vice Foreign Minister Cho Jung-pyo over allegations he also played a key role in the stock manipulation scheme and pocketed substantial profits from it.

Prosecutors said earlier in the day they have nullified the passport of CNK President Oh Deok-gyun, now believed to be hiding in Cameroon, in a bid to bring him back home for investigation.

(Yonhap News)