Prosecutors investigating allegations that an active-duty police officer leaked confidential information about stock manipulation cases have launched a compulsory investigation after uncovering additional suspicions involving another officer.
According to the Seoul Kyungjae Daily on Wednesday, the Joint Financial and Securities Crime Investigation Unit of the Seoul Southern District Prosecutors' Office is conducting a search and seizure of the office of Superintendent A, who is assigned to the Security Bureau of the National Police Agency.
Prosecutors had previously identified circumstances suggesting that Inspector C of Gangnam Police Station leaked investigation information while probing a case in which a former Daishin Securities employee, a businessman, and Mr. B—a wealthy individual and husband of a famous influencer—allegedly manipulated the stock price of a KOSDAQ-listed company.
Inspector C is also suspected of having decided not to forward the case involving Mr. B's spouse to prosecutors.
During the investigation, prosecutors detected evidence that Mr. B had exchanged multiple communications with Superintendent A and are reportedly conducting the search to determine whether any improper solicitations occurred.
Mr. B and others allegedly engaged in matched trading—buying and selling stocks at predetermined prices and times—to manipulate the stock price of a KOSDAQ-listed company. They are known to have used securities firm customer accounts and accounts registered under borrowed names in the process.