Daou Kiwoom Group Executive Chairman Kim resigned

Daou Kiwoom Group Executive Chairman Kim Ik-rae stepped down from his positions on Thursday following suspicious stock sales through the local branch of Societe Generale Securities.

Daou Kiwoom Group Executive Chairman Kim Ik-rae gives a public apology during a press conference at the Kiwoom Securities headquarters in Yeouido, western Seoul on Thursday. [NEWS1]

Daou Kiwoom Group Executive Chairman Kim Ik-rae stepped down from his positions on Thursday following suspicious stock sales through the local branch of Societe Generale Securities.

"I will resign from the chairman position at Daou Kiwoom Group and the board seat at Kiwoom Securities," Kim said in a press conference on Thursday. "I will return the proceeds from the sale of Daou Data to society."

During the conference, Kim apologized for the massive unloading of shares, which may have harmed retail investor, and vowed to fully cooperate with financial authorities and investigative agencies during future investigations.

Kim was found to have sold 1.4 million shares of Daou Data valued at 60.5 billion won ($45.7 million), two days before the collapse of the stock.

Daou Data plunged 30 percent on April 24 and 25. It owns 45.20 percent of Daou Technology, which owns more than 40 percent of Kiwoom Securities.

Kiwoom Securities denied Wednesday recent claims made by Ra Deok-yeon, head of an investment firm and a suspect in the stock manipulation case.

Ra said in a recent interview that Kim may have short sold the shares.

Kim said the sale of Daou Data shares was processed in a block deal that commenced in April, and the process was expected to take around two to three weeks.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]