A Seoul court said Friday it has rejected prosecutors' request for a warrant to arrest a former energy ambassador, suspected of reaping massive profit from a stock manipulation scheme linked to a diamond mining project in Cameroon.

The Seoul Central District Court dismissed the request for the warrant late Thursday for former Energy and Resources Ambassador Kim Eun-seok, suspected of directing the issuance of an overstated press release that sharply drove up stock prices of a local mining company involved in the Cameroon project. Kim, 55, was dismissed from the post in January due to the scandal, which also involves other government officials and the head of the mining firm, CNK International.

"Kim's suspected collusion with accomplices in the stock manipulation has not been properly laid out, and he is not likely to destroy evidence or flee," Judge Lee Chung-suk said.

Kim is alleged to have used his influence as a senior official at the foreign ministry to inflate the stock prices of CNK by exaggerating in the press release the volume of diamond reserves in the Cameroon mining project.  

Possibly being tipped off by Kim, his family members reportedly reaped millions of won in profits after the official announcement in late 2010 sharply boosted the share price of the KOSDAQ-listed mining firm.

The disgraced ambassador is also suspected of making false statements in a parliamentary audit last year to cover up the alleged manipulation.

Other key suspects in the scandal include Cho Jung-pyo, a former vice foreign minister, and CNK President Oh Deok-gyun.

Prosecutors are now searching for Oh, who is currently suspected to be hiding in Cameroon, through cooperation with Interpol. (YNA)