A Returner’s Successful Investment Method - Chapter 615



Only Krnovel

Episode 615 NDY Investment (8)

Each securities company was busy recovering its losses.

“Customers are not hearing from us.”

“Everyone is refusing to deposit the loss amount.”

“He said he didn’t make the deal, so he won’t take responsibility.”

“Do whatever you want, whether it’s a civil lawsuit or a search and seizure… … .”

Those who traded on margin and CFDs all refused to compensate for their losses.

“No, you invested without knowing there was this risk?”

“The terms and conditions clearly state that losses exceeding the principal amount may occur!”

“If you had earned it, wouldn’t you have asked the securities company for that money? “But you’re saying you can’t pay because you lost?”

However, if you say you will not give it, there is no way right now.

In this case, the securities company really ended up having to take a loss!

Securities companies all held emergency meetings.

This place was nothing short of a burial ground for Continue Capital.

“It’s Continue Capital again!?”

“How much did these guys eat?”

“At least give me a hint in advance!”

Considering what Continue Capital had done in Korea so far, it was nothing short of an object of fear for securities companies.

But this time, something like this happened again.

They even short-sold not only the stock in question, but also securities companies with high CFD ratios!

There was talk that Continu Capital’s profits would exceed 2 trillion won while securities companies were taking on hundreds of billions of won in losses.

* * *

[The backwardness of the Korean stock market seen from the NDY Investment stock price manipulation incident]

The shock to the Korean stock market triggered by the Continue Capital Report continues.

Among these, four stocks hit the lower limit for four consecutive times, cutting their stock prices by a quarter, and the market capitalization that evaporated during that time amounted to 10 trillion won.

As many instances of stock price manipulation have been discovered and the financial authorities and prosecutors are investigating, it is difficult to estimate how much further damage will occur in the future.

Over a period of more than a year, the operation group collected investment funds through a multi-level method from high-net-worth individuals such as hospital directors and celebrities, then secured hundreds of smartphones in the investor’s name and raised the stock price by engaging in cross-trading.

They invited hundreds of people to participate in trading, selected blue-chip stocks with low circulation volumes, and gradually raised them to a certain target amount.

Here, a CFD account was used to hide the purchaser and disguise the purchase as a foreigner.

Not only did many investors lose their investment money due to this incident, but they are now forced to pay additional losses.

If individual investors fail to compensate, securities companies will have to bear hundreds of billions of won in losses on their behalf.

However, since the carelessness of individual investors is to blame, securities firms are very responsible for this incident.

Securities firms have been generating enormous commission income through CFDs and credit trading, but have neglected risk management.

This increase in CFD sales is because the asset standard was lowered from KRW 500 million to KRW 50 million, lowering the hurdle for general investors to access it, and because securities companies have been promoting it competitively.

CFDs, a derivative product, have fees that are more than 10 times higher than selling funds or other products.

Thanks to these high fees, some securities companies have relaxed their own margin standards.

In addition, when analyzing about 10,000 corporate reports published by Korean securities companies over the past six months, more than 80% of the reports recommended a buy opinion, and only 9 opinions suggested a sell opinion.

Three months before the incident occurred, several stock watchers posted a video accusing the stock of being suspected of stock price manipulation, and there was talk in the stock community that the stock price was being manipulated.

However, securities companies have not taken any action despite seeing an abnormal surge, and the financial authorities have also taken no action.

Some point out that one of the reasons for this situation is that various stock market advancement laws proposed by the previous government were not passed.

Former President Namgoong-seok, who strongly opposed the division of GL Entech, proposed a stock market-related law in the name of the President’s Office after becoming president.

This included systemizing short selling, establishing a monitoring device to detect stock price manipulation in advance, and severely punishing stock price manipulators.

However, it could not pass the National Assembly due to opposition from the business community and the opposition party at the time.

This is because the bill included several laws that were unfavorable to major shareholders, such as restrictions on physical division, prohibition of split listings, prior public notice when selling majority shareholders’ shares, and applying the same conditions to minority shareholders when transferring majority shareholders’ shares.

(syncopation)

Korea is the 11th largest economy in the world and has become an advanced country recognized by the world.

There are several world-class companies such as Yusung Electronics, Daeyeon Motor, and GL Entech, and the size of the financial market is also rated as the 6th largest in the world.

The problem is that, despite its size, it has a very backward structure.

Embezzlement and breach of trust by major shareholders, giving work to relatives’ companies, collecting toll taxes by inserting private companies into transactions between companies, physical division, split listings, setting merger ratios favorable to major shareholders, low dividend rates, etc.

Couple this with low sentences for financial crimes, and the Korean stock market has literally turned into a gambling den.

When it comes to election season, all kinds of politician-themed stocks are thrown around, and, if you don’t forget, large-scale stock price manipulation scandals have occurred.

Since there is no law that prevents something like this from happening again next time, the Korean stock market should not be left like this any longer.

* * *

As stock price manipulation accomplices were caught one by one, new articles continued to pour in.

[Maelim Holdings Chairman Lee Kwang-seok sells a large amount of stocks just before the plunge!]

[Disposal at 32,100 won per share, total profit of 62 billion won!]

[Chairman Lee Kwang-seok, did you know about the stock price manipulation and just stood by?]

[If you are linked to an operational force, you cannot avoid legal responsibility… … .]

Maerim Holdings, like other stock price manipulation stocks, is a company with a high stake in major shareholders and a low circulation volume.

Suspicions were raised that this may be related to operational forces, and Chairman Lee Gwang-seok directly expressed his position on this.

“We would like to say that the malicious claims made regarding the recent stock sale are absolutely not true. The stock sale was carried out through legal procedures and had nothing to do with the former operational force. “I would like to clearly state that the reason I sold my stocks was simply because I needed funds for retirement.”

While shareholders were shedding blood and tears due to the plunge in stock prices, the majority shareholder sold stocks at the highest point and made 62 billion won.

Considering the timing of the sale, it was difficult to avoid suspicion that it was linked to operational forces.

In fact, suspicions and testimonies poured in that he had met with some of the operational forces.

When the Financial Supervisory Service announced that it would launch an investigation, Chairman Lee Gwang-seok quickly announced his intention to resign as chairman.

“It was a fair transaction without any legal issues, but I decided to resign because I felt responsible for disappointing many shareholders. “We will engage in future investigations with an active and sincere attitude.”

Before the shock of the major shareholder fraud could subside, more shocking news came out covering up this news.

[Famous singer invests 4 billion won in operational power!]

[Singer Jeong, what is your relationship with stock price manipulation forces?]

[While Jung Chang-min was on friendly terms with Baek Sang-cheol… … .]

It is known that many celebrities have also invested in NDY Investment.

They also suffered large losses, but they all denied the investment itself or kept quiet.

However, I couldn’t deny at least one person.

It’s Jung Chang-min.

The media obtained videos and photos of him praising Baek Sang-cheol and recommending investment at an investment briefing session, and reported them day after day.

In fact, cases of celebrities being scammed are not uncommon.

There are countless known cases.

There are three main reasons.

Firstly, because they make a lot of money, and secondly, because they don’t know much about the world.

Lastly, thirdly, they have a greater ability to empathize than ordinary people, which also contributes to the fact that they cannot easily refuse others’ requests.

However, it appears that Jung Chang-min not only was scammed, but also participated in it.

As public criticism poured in, Jung Chang-min hastily issued an explanation.

The content was lengthy, but to roughly summarize… … .

First, I only met Baek Sang-cheol through an acquaintance.

Second, although it is true that we invested 4 billion won, we actually lost more than 5 billion won.

Third, I had no idea that the stock price was manipulated, and I regret the remarks I made at the investment briefing session.

Unfortunately, the public response was not very positive.

-Hey! Changmin why did you do that? ㅜㅜ

-No, you invested 4 billion and didn’t know?

-I heard you opened a CFD account and entrusted your smartphone to me?

-People who are very generous when they make a profit, but don’t know much about it when they lose money haha.

-There must have been more than one person who listened to Jung Chang-min and invested.

-I didn’t see this guy like that, and I’m very disappointed.

-really. He’s my favorite singer so much that I even went to his concerts.

-From now on, when I listen to Jung Chang-min’s song, all I will think about is stock price manipulation.

* * *

Because the situation was so serious, the government launched an emergency response meeting.

The Financial Services Commission, the Financial Supervisory Service, the Korea Exchange, and the Seoul Southern District Prosecutors’ Office gathered to discuss solutions to this incident and measures to prevent recurrence.

Financial authorities and prosecutors searched and seized the office of NDY Investment, banned nine people involved from leaving the country, and focused on identifying Baek Sang-cheol’s whereabouts.

After the meeting, President Keum Yang-seop received a report from Deputy Prime Minister and Minister of Economy and Finance Choi Hyeong-joo.

“This happened just because of the Continue Capital Report? No, if you discover a financial crime, you should report it right away. But you took a short selling position to show off and then reported it as stock price manipulation?”

“That’s right.”

As a result, something shocking happened: the lower limit price of 10 stocks simultaneously occurred.

The stock prices of related stocks fell by as much as 50% or as much as 90%, and stock price manipulation forces, individual investors who jumped in late, and securities firms that sold CFDs and were unable to collect receivables suffered enormous losses.

And in the meantime, Continue Capital earned a huge amount of profit.

Continue Capital’s estimated profit from this investment is approximately 2 trillion won.

With the financial market under fire… … No, to be exact, they carried out the bombing and took away 2 trillion won.

What kind of people would do something like this?

“Are there any legal problems with this?”

“There is no problem as long as the stock price is not colluding with the manipulation forces.”

If you think the stock price will rise, buy it, and if it looks like it will fall, sell it or short it.

The same goes for stocks that have risen due to stock price manipulation. In fact, this is one of the positive functions of short selling.

By short selling stocks that have risen sharply for no particular reason, they are encouraged to return to their original prices.

If you think about it, this incident was not caused by Continue Capital.

What was going to happen anyway, Continue Capital just exploded early. If it had exploded later, the scale of damage could have been greater.

“Some securities companies will suffer losses ranging from tens of billions of won to as much as 200 billion won, but it will not be a problem for their soundness. “We have decided to limit credit transactions for risky stocks in the future and revise the CFD system.”

While Geum Yang-seop was a member of the National Assembly, he took the lead in opposing the stock market advancement law proposed by President Nam Goong-seok’s office, calling it a ‘law to kill companies’.

However, when a large-scale stock price manipulation incident broke out at the beginning of his term, some people raised the theory of his responsibility, arguing that this would not have happened if this law had been passed.

If we do not respond properly, we will be criticized by the public.

After Deputy Prime Minister and Minister of Economy and Finance Choi Hyung-joo left, President Geum Yang-seop gritted his teeth.

“These speculators… … .”