A dramatic rise and fall in Siwon School’s stock price has sparked a police investigation into possible stock manipulation. The probe has also drawn in Gold Medalist, the agency representing actor Kim Soo Hyun, raising questions about their role in the controversy. Here’s everything you need to know about this unfolding financial drama in South Korea.
What Sparked the Investigation?
Siwon School, a leading online English education platform listed on the KOSDAQ, caught the attention of authorities after unusual stock activity. The company has built a strong reputation in South Korea’s e-learning market, offering courses for students and professionals. However, its stock price movements over the past few years raised red flags.
Stock data shows Siwon School’s share price lingered around 1,000 KRW (roughly $0.70) for some time. Then, in July 2022, the price began climbing rapidly. Within nine months, it soared to over 10,000 KRW—a massive sevenfold jump. This spike baffled analysts, as it didn’t align with the company’s financial performance at the time.
The rally didn’t hold. A wave of sell-offs hit, and the stock crashed back to its earlier levels in just two months. This rollercoaster ride prompted the Financial Intelligence Unit (FIU), part of the Financial Services Commission, to investigate. They suspected market manipulation and sent a report to the police.
The Korea Exchange (KRX) also flagged Siwon School’s stock for irregular trading patterns. These alerts pushed law enforcement to dig deeper into what—or who—might have driven the strange activity.
How Is Gold Medalist Involved?
The investigation took a surprising turn when Gold Medalist, the agency behind Kim Soo Hyun, one of South Korea’s biggest actors, emerged as a key player. Gold Medalist manages stars like Kim Soo Hyun, known for hits like Queen of Tears and My Love from the Star, and has a stake in Siwon School’s ownership.
Siwon School’s shares are structured unusually. Over 50% of the company is owned by a private investment partnership. This partnership is funded equally by two entities, one of which is an entertainment agency—revealed to be Gold Medalist.
Investigators are now examining whether Gold Medalist had any role in the stock’s unusual movements. The agency’s involvement has shocked fans and industry insiders, given its focus on talent management rather than financial markets.
When asked by KBS about the allegations, Gold Medalist firmly denied any misconduct:
We had no involvement whatsoever in the trading of the stock in question.
Despite their statement, police are looking into the agency’s financial ties to Siwon School to rule out any improper influence.
What Are Authorities Doing?
The police have zeroed in on specific accounts suspected of driving the stock’s surge and crash. They’ve identified the owners of these accounts and are tracing the flow of funds to uncover any illegal profits.
The FIU and KRX are working together to analyze trading data. They’re checking for signs of tactics like order matching, where traders artificially inflate stock prices by coordinating buy and sell orders at pre-set prices. This practice is illegal in South Korea, as it misleads investors about a stock’s true demand.
Authorities are also reviewing Siwon School’s financial records and the private investment partnership’s activities. They want to know if anyone—inside or outside the company—orchestrated the price spike for personal gain.
Why Does This Matter?
The case has gripped both the financial and entertainment worlds. Siwon School’s stock drama could shake investor trust in the KOSDAQ, a market for smaller, tech-focused companies. If manipulation is proven, it might lead to tougher regulations on stock trading in South Korea.
For Gold Medalist, the stakes are high. The agency’s link to Kim Soo Hyun, a global star, puts it under intense scrutiny. Any confirmed wrongdoing could damage its reputation and affect its clients’ careers.
Fans of Kim Soo Hyun are watching closely, worried about how the controversy might impact their favorite actor. Social media posts reflect their concern:
I can’t believe Gold Medalist is caught up in this. Hope Kim Soo Hyun stays clear of trouble!
This stock thing sounds messy. Praying it’s just a misunderstanding.
The investigation is still in its early stages, and no charges have been filed yet. But with regulators and police digging deeper, more details are likely to emerge soon.
What Happens Next?
Police are expected to interview key figures at Siwon School and Gold Medalist in the coming weeks. They’ll also analyze trading records to pinpoint any coordinated efforts behind the stock’s wild ride.
The Financial Services Commission may step in with penalties if they find evidence of market abuse. For now, both companies are under a microscope, and the public is eager for answers.
This case could have far-reaching effects, from tighter financial oversight to ripple effects in the entertainment industry. Everyone’s waiting to see how the truth unfolds.
