Prosecutors search and seizure of Meritz Securities... "Suspected fraudulent transactions"

Prosecutors raided Meritz Securities Co., which is suspected of violating the Capital Markets Act, in connection with a bond transaction with Lee Group with the right to acquire new shares.

The Seoul Central District Prosecutors' Office's Tax Crime Investigation Department has raided Meritz Securities headquarters and others since this morning (19th) on charges of fraudulent and fraudulent transactions.

Prosecutors are looking into whether there was any fraudulent transaction by executives and employees of Meritz Securities in the process of issuing 170 billion won worth of bonds with underwriting rights, or bonds that gave them the right to buy shares, against Meritz Securities in 2021.

Earlier in October 2021, prosecutors issued bonds with underwriting rights by three of the group's affiliates, but handed over Kim Young-joon, former chairman of Ewha Electronics, to trial under arrest on charges of falsely disclosing bonds as if they had issued bonds without collateral.