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FSS probes China Ocean Resources over stock price rigging

[THE INVESTOR] South Korea’s financial watchdog has launched an investigation into China Ocean Resources over the Hong Kong-based firm’s alleged unfair trade practices here, according to sources on Sept. 26.

Financial Supervisory Service is currently reviewing data regarding the Seoul-listed deep sea fishing company’s false disclosure statement which led to a fine of 200 million won (US$176,000) and inclusion in blacklist of the country’s bourse operator Korea Exchange in July. 



People familiar with the matter said the financial watchdog could be looking into possible stock manipulation charges as the authority has handed over the case to its Capital Market Investigation Department.

The team is in charge of investigation the unfair securities trading and enforcement of securities trading rules and regulations.

The Corporate Disclosure Department, which takes care of supervisory review of securities-related filings, used to deal with such cases.

In April, the Hong Kong-based company announced that it was sued by a partner firm for failing to pay back loans and interest. It added that 30 percent of its subsidiary shares were sequestrated but the disclosure turned out to be false.

Speculations were rampant at that time the firm’s CEO initiated the false disclosure in order to buy shares of China Ocean Resources at a lower price.

Shares in China Ocean Resource were trading at 1,895 won as of 2:40 p.m., down 2.07 percent from the previous session.

By Park Han-na (hnpark@heraldcorp.com)
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