HiveComb


The government conducted a large-scale tax investigation into unfair stock market activities such as stock price manipulation and corporate hunting, and uncovered hundreds of billions of won worth of tax evasion.
The National Tax Service said on the 5th that it confirmed 615.5 billion won in evasion and collected 257.6 billion won of it, and filed 30 cases with the prosecution as a result of intensive tax investigations on unfair tax evaders in the stock market from July last year to February this year.
The subjects of this survey are 27 companies and related persons who infringed on the interests of minority shareholders, including ▲ false disclosure companies for stock price manipulation ▲ food and run business hunters ▲ controlling shareholders who defrauded private interests by privatizing listed companies.

A machinery maker made public its plan to promote new businesses such as "eco-friendly energy" and set up company B and company C with its employees as its representative, and invested about 10 billion won (approx. However, the two companies were paper companies to siphon off investments.
Company B stole billions of won through a false lease contract and delivered it to the owner of Company A, and Company C received a processed tax invoice from an insolvent company with no sales and leaked corporate funds. Since then, the stock price has plummeted to a third as the new business plan was revealed to be false, and the company was eventually delisted.
An investigation by the National Tax Service found that the owner lived a luxurious life by using the embezzled funds to purchase high-value lease on a deposit basis and golf membership. The National Tax Service collected billions of won in additional income taxes on the owner, who is the actual owner of the corporate funds, and filed a complaint against the related corporations and owners.

Companies that tried to avoid delisting due to false performance were also caught. Company D made a public announcement by producing false performance as if it were selling medical products that were in high demand at the time of COVID-19, as the risk of delisting increased due to the lack of sales. It was also found that the company embezzled billions of won from the company through a company whose employee's family is the representative.

Unfair trade by corporate hunters was also confirmed. Mr. E, a private lender, took over a metal panel manufacturing listed company F under a borrowed name and colluded with stock price manipulators to manipulate stock prices through a masquerade and control trading method, earning billions of won in profits and evading capital gains tax. He manipulated the market by utilizing internal information, including changes in management rights, and pocketed more than 8 billion won in unfair profits, but since then, the stock price has plummeted by more than 60%, causing damage to minority shareholders.

There was also a case where a private listed company was privatized and handed over profits to family. Company G's stockholders used internal information to donate their shares to their children in advance, and then proceeded with a roundabout listing through a merger with SPAC. Since then, as the value of stocks has risen nine times in a short period of time, children have earned more than 10 billion won in profits, but have not paid gift taxes.
Another company, Company H, provided unfair support by lending funds to unlisted companies controlled by the owner's family at low interest rates. The stockholder manipulated the market price by asking his acquaintance to sell the company's shares held by executives and employees at one-third of the normal price on the over-the-counter trading platform, and his child acquired shares at low prices and earned billions of won in profits.

President Lee Jae-myung said at a press conference on the 100th day of his inauguration in September last year, "I will clearly show that if the stock price is manipulated, the defeat will be ruined."
The tax agency said it will continue to monitor stock price fluctuations and abnormal trading patterns to track unfair trade practices. It also stressed that it will expand the scope of investigation to include CEOs and related parties to closely check whether irregularities have occurred or not.
Reporter Jeong Jae-hong hongj@joongang.co.kr

If you want to investigate properly, without sanctuary, and continue to make illegal profits
You have to be prepared to lose several times that.

Until the capital market becomes transparent...