[비즈한국] On the 24th, the headquarters of Daishin Securities003540 was raided. This is because the Financial and Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutors' Office is investigating allegations that a branch employee, Mr. A, conspired in stock market manipulation. Mr. A, who was a manager-level employee, resigned late last year.
The securities industry is closely watching this prosecution investigation. This is because President Lee Jae-myung has recently expressed a strong determination to strictly punish stock manipulation. In January, President Lee stated on social media, "The ruin of one's life due to stock manipulation is no empty threat." It is expected that law enforcement agencies will conduct rigorous investigations into stock manipulation. Furthermore, since the incident occurred within a securities firm that trades stocks, it is expected to have a greater impact than other stock manipulation cases.
Daishin Securities stated that it has been conducting its own internal audit since June of last year, immediately after becoming aware of the allegations. Based on the internal investigation results, the company reported Mr. A to the police and took disciplinary action at the corporate level. A Daishin Securities official said, "We are responding to illegal activities with a zero-tolerance policy and are faithfully cooperating with the investigations of relevant authorities."
Daishin Securities is receiving positive evaluations for identifying this incident early and taking preemptive measures. However, some are expressing disappointment that it could not be controlled beforehand. In the internal control policy section of Daishin Securities' corporate governance report, it is stated that "the board of directors and management should encourage high ethical and integrity standards for all employees and create an organizational culture regarding compliance with internal controls," and "all employees understand their roles in the internal control process and participate actively in internal controls."
Daishin Securities had a good atmosphere recently as its performance was on an upward trend. Net profit increased by 47.71%, from 144.2 billion won in 2024 to 213 billion won in 2025. This incident has essentially poured cold water on that positive momentum.
The term of Daishin Securities CEO Oh Ik-keun ends in March. CEO Oh has already expressed his intention to step down. Jin Seung-wook, Vice President of Daishin Securities, has been named as the successor. A key task for Daishin Securities is entering the 'Mega IB' (Investment Bank) market. If designated as a Mega IB, the firm can conduct a promissory note business. To become a Mega IB, equity capital must exceed 4 trillion won. According to public disclosures, Daishin Securities surpassed 4 trillion won in equity capital last December.
It does not mean Daishin Securities can immediately become a Mega IB. The Financial Services Commission (FSC) stated last July regarding Mega IB designation that "while currently, the equity capital requirement only needs to be met at the time of application, in the future, it must be continuously met based on the closing accounts of the last two fiscal years." This means they must maintain equity capital of over 4 trillion won next year as well.
The company must also pass the FSC's 'social credit' screening. The Enforcement Decree of the Capital Markets Act also stipulates that requirements for Mega IB designation include "having appropriate work methods for investor protection" and "not having concerns about harming sound financial transaction order."
For Daishin Securities, follow-up responses to Mr. A's stock manipulation allegations are crucial for receiving Mega IB designation. If similar incidents are repeated, they will receive demerits in the social credit screening even if they meet the equity capital requirements. As Vice President Jin Seung-wook previously served as Head of the Strategy Support Division and Head of the Management Planning Division at Daishin Securities, his appointment is seen as a positive move to strengthen internal controls. The securities industry is watching to see if Daishin Securities can overcome this controversy and leap into a Mega IB.