[News Today] 2ND RULING ON STOCK MANIPULATION

[LEAD]
The appellate court will also rule on the 'Deutsch Motors stock manipulation case' today. Suspicion of involvement surrounds First Lady Kim Keon-hee.
The key issue is the alleged financier Mr.Sohn, whose account was used in the stock price manipulation process. This verdict is expected to impact the prosecution's ongoing investigation into the First Lady.

[REPORT]
The Deutsch Motors stock price manipulation allegation was raised against the company's former chairperson, Kwon Oh-soo, for conspiring with former and incumbent employees to fabricate the company's stock prices between 2009 and 2012.

Later it was revealed that an account under First Lady Kim Keon-hee's name was used in stock manipulation, pointing to the possibility of her involvement.

Prosecutors believe Kwon raised stock prices from 2,000 won, or around 1.5 dollars, to 8,000 won, approximately 6 dollars, using the so-called matched orders by setting selling and buying prices in advance.

A court of first instance sentenced Kwon to two years in jail, suspended for three years, and a fine of 300 million won, or around 224,000 dollars.
An appellate court issued its sentence on Thursday after a year and seven months.

The court of first instance recognized the fact that the first lady's account was used in stock manipulation, but it did not rule on collusion.

The salient point is whether the account of a financier surnamed Sohn was also used in stock manipulation.

In the first trial, Sohn was found not guilty because "it was hard to ascertain if there was an attempt to change the stock price." However, the prosecutors appealed and added "facilitation of stock manipulation" to the list of charges.

They believe although Sohn is not an accomplice per se, Sohn was aware of stock manipulation when providing funds, which is tantamount to condoning the crime.

If Sohn is found guilty by the appellate court, Kim Keon-hee and her mother, Choi Eun-soon, will also likely be indicted for aiding stock manipulation.

If Sohn is found not guilty, it will be difficult to indict the first lady.

Kim claims she was unaware of stock manipulation and was never involved.

Prosecutors who interrogated the first lady behind closed doors back in July plan to reach a final decision on her in
line with the appellate court's verdict.