This article was displayed on the ChosunBiz MoneyMove (MM) site at 1:37 p.m. on July 2, 2025.
It has been reported that a person who was convicted of past stock price manipulation has been appointed as the representative of B2EN, a big data software company. This individual is also an auditor of INITECH, a financial security company recently sold by KT.
Financial authorities have recently strengthened related laws to prevent individuals with a history of violating capital market laws, such as stock price manipulation, from holding executive positions in listed companies. This measure was put in place considering the high recidivism rates of those punished for unfair transactions. However, the targets of this law will only be applicable after its amendment.
B2EN appointed a new representative, Mr. Kim, in January. Mr. Kim has a background as the representative of New Oriental Hotel and JS Value Partners, making him a well-known figure in the stock market due to his past conviction for illicit gains of hundreds of millions won from capital injections through zero-capital mergers and acquisitions.
Mr. Kim falsely announced that he would acquire the KOSDAQ listed company Act (now EV Advanced Materials) with his own funds while actually financing the acquisition with loans, and spread false news about a partner company engaging in liquefied petroleum gas (LPG) import-export business to inflate stock prices. In this process, Mr. Kim and others pocketed unfair profits of several hundred million won, which the court deemed a guilty verdict.
Mr. Kim's name has also been spotted in INITECH, a KOSDAQ listed company that is currently undergoing a sale. In March, Mr. Kim was appointed as the full-time auditor. The company explained that he was appointed at the discretion of the new major shareholder following the change in ownership.
In this regard, a stock market official noted, "There are many repeated cases of unfair transactions such as stock price manipulation even after punishment, and it does not seem appropriate for individuals with a criminal record to be on the board of listed companies."
In particular, Mr. Kim is linked to both companies on the board that are associated with SSANGBANGWOOL Group, causing controversy inside and outside the company. B2EN's largest shareholder is the Extra Twins 1 Fund, which is part of the ownership structure of SSANGBANGWOOL Group, connected through a chain from SSANGBANGWOOL to VIVIEN to DMOA to Extra Twins 1 Fund, and has special relationships with subsidiaries such as VIVIEN and SSANGBANGWOOL.
INITECH, the security company sold by KT, faced controversy over allegations of funding from SSANGBANGWOOL at the time of the sale. INITECH, which was a subsidiary of KT, changed its major shareholder shortly after being acquired by the secondary battery company Enchem.
The new major shareholder of INITECH is believed to be related to former Chorokbaem Media Chairman Won Young-sik. The company is led by Lee Sang-jun, a close associate of Won and a former representative of Joongang Advanced Materials (formerly Central Bio). The new major shareholder, SJ First Participant Holdings, borrowed a significant portion of the acquisition price from Ocean In W, where Chairman Won holds 100% of the equity.
Meanwhile, financial authorities have recently introduced regulations that could limit the appointment of individuals with stock price manipulation allegations to executive positions in listed companies for up to five years. This administrative regulation, based on the amended Capital Market Act, is considered a strong measure of punishment. It allows for restrictions on executive appointments based on consultations between financial authorities and prosecutors before a guilty verdict is issued. This provision applies to cases following the Capital Market Act revised in April.
Along with this, the Financial Supervisory Service, the Financial Services Commission, and the Korea Exchange are expected to establish and operate a joint response team to eliminate stock price manipulation starting at the end of this month.