Prosecutors Seizure Eight Securities Companies for Suspicion of Releasing Bonds

The Seoul Southern District Prosecutors' Office has raided eight other securities firms that traded with securities firms suspected of "bonding" since this morning (16th) on charges of professional malpractice.

They are accused of matching their returns by buying corporate bills from customer accounts at a high price as it becomes harder to meet their target returns ahead of maturity.

At the end of last year, the Financial Supervisory Service, which intensively examined the "suspected return of lab and trust," asked the prosecution to investigate nine securities companies, including Hana Securities, KB Securities, Kyobo Securities, Mirae Asset Securities, Yuanta Securities, Eugene Investment & Securities, Korea Investment & Securities, NH Investment & Securities and SK Securities.

They are accused of preventing losses to other customer accounts or compensating for some of the losses with the company's own funds to ensure returns for certain customers as the money market froze in the second half of 2022 due to the Legoland crisis.