The chairman of Kumho Tire’s parent company, Kumho Asiana Group, is accused of manipulating stock prices in order to lower the takeover price of Kumho Industrial Co., according to Business Korea. 
In a recent lawsuit filed by a shareholder, Chairman Park Sam Koo and 20 other Kumho Group executives have been sued for professional malpractice; violation of the financial investment laws, including insider trading, market price manipulation and unfair trading; and bid interference. The suit alleges that Park intentionally lowered the stock price by registering the shares of sale in a bid to lower the takeover price of Kumho Industrial, Business Korea reported.
Bidding on the majority share, 57.5%, of Kumho Industrial is underway through April 28, and several potential buyers have already come forward. Chairman Park has the first right of refusal option that allows him to buy a 50% stake plus one share in Kumho Industrial by matching the price of the highest bid.
The shareholder who filed the suit, named only as Kang, also casts doubts on stock price manipulation using closed information, Business Korea said. Kang presented the list of stock sales by Kumho executives from Nov. 2014 to February this year as evidence, Business Korea said. Among those sales were on Feb. 26, when Shinsegae submitted a letter of intent acquire Kumho Industrial, Kumho Industrial President Won Il-woo sold 3,000 shares, while Kumho Engineering and Construction vice president and its director sold 2,000 shares each as well. All three men profited, but the stock price of Kumho Industrial dropped 13% the next day when Shinsegae withdrew its bid.
