DEUTSCH MOTORS CHIEF ARRESTED

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Deutsch Motors Chairman Kwon Oh-soo has been arrested for allegedly manipulating his company's stock prices. Investigation into the scandal is expected to gain pace as PPP presidential candidate Yoon Seok-youl's spouse is also suspected to be involved in it.

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The Seoul Central District Court issued an arrest warrant for Deutsch Motors Chair Kwon Oh-soo. The court cited the possibility of Kwon destroying evidence. He is suspected of having violated the Financial Investment Services and Capital Markets Act. Kwon allegedly manipulated his company's stock prices over three years to prevent them from falling. Deutsch Motors' shares traded at around 9,000 won in January 2009, but later that year plunged to 1,800 won before surging to 8,300 won in just a year. The prosecutors believe Kwon induced stock buying by spreading favorable information about the automaker's shares, and raised their prices by placing false orders on accounts that he managed personally. Evidence has been found that Kwon collaborated with stock price manipulators in the process. Three people including the CEO of an investment firm have already been arrested for their involvement in Deutsch Motors' stock price manipulation. The investigation is expected to be expanded to PPP presidential candidate Yoon Seok-youl's spouse, Kim Keon-hee, for her alleged involvement in the scandal. Kim has been reported for providing funds to be used in stock price manipulation. Last week the prosecutors arrested a man surnamed Lee for allegedly receiving one billion won from Kim. Prosecutors will interrogate Kwon and Lee about Kim's involvement before deciding whether and how to investigate her.