S. Korean Foreign Ministry raided by prosecutors over stock scandal

SEOUL, Jan. 30 (Yonhap) -- Prosecutors raided the foreign ministry in Seoul early Monday as they broadened their investigation into allegations the ministry's energy envoy illegally used his influence to reap massive profits in a stock manipulation scheme involving an overseas mining project. Prosecutors and inspectors looked through computer hard discs and documents at the office of Kim Eun-seok, an ambassador for energy and resources, in search of evidence, sources said. The offices for the ministry's spokesman and public relations officials were also raided. The search came after the energy and resources envoy was dismissed from his post last week over his suspected role in the manipulation of stock prices of CNK International, a mineral development company. Kim and his family members and CNK president were suspected to have illegitimately pocketed millions of dollars from steep hikes in the stock prices of the resources development company in early 2011. Investigations by the financial watchdog and the audit agency found Kim used his influence in releasing a ministry-issued press release that falsely inflated the value of the firm's winning bid for a diamond mining project in Cameroon, driving up CNK's stock prices by more than five-fold in just three weeks in early 2011. The state auditor said Kim's family members raked in massive profits on their holdings of CNK stocks, acquired before the 2009 deal was made public. CNK's president Oh Deok-gyun and Cho Joong-pyo, a former vice foreign minister and a former chief aide to the prime minister, as well as Park Young-june, a former vice economic minister, were also suspected to have played major roles in the manipulation and pocketed massive profits. Prosecutors are reportedly preparing to summon the suspects for questioning as early as this week. (END)